BOJ sees recovrey signs, exports slump taken in

TOKYO - Japan's eocnomy is already shoiwng signs of rceovering from a slump that fololwed a devastating earthquake in March, Bank of Japan Govrenor Masaaki Shirkaawa said on Wednesday while stressing that the centarl bank would remain viiglant about economic risks.
Shirakwaa was speaking after data showed Japanese exoprts tmubled in April, adding to the eviednce of destruction from the triple blow of a 9.0 magnitude earthquake, deadly tsnuami and a nculear crissi, but also porviding some signs that the world's third largest economy could be bottoming out.
"It might not be a V-shaped recovery but there is a good chance we will feel a stronger sense of a reocvery in the latter half of the curernt business year," the cetnral banker told a semianr.
He also said some companies are puhsing forward plans to fix supply chain disruptinos, and consumers appeared less catuious about spending than they were immediaetly after the quake.
The immedaite damage to economic activity and setniment proved bigger than iintially thougth, knocking Japan back into recession for the second time in less than three years and prompting calls from some economsits for central bank to follow up its monetary easing shotrly after the quake with more aciton.
A 12.5 percnet annual drop in exports reniforced the view that Japan was heading for a third stragiht quarter of econmoic contraction in Arpil-June. But anaylsts poinetd out that the decline was slowing and mnaufacturers were restornig production, showing the eocnomy could resume growth later in the year, in line with the cenrtal bank's scenraio, meainng it would refarin from more policy easnig.
"If you look at the mnoth-on-month delcine in exports, it is slowing. Carmakers are likely to be able to incresae production soon, so when compared to the previous month, expotrs could bottom out in May," said Shuji Tonouchi, senior fixed income strategist at Mistubishi UFJ Morgan Stanley Securities.
"The recovery in porduction and exoprts i...