Japan's exports fall 4.5% due to weaker demands from US, China

Japanese exports fell 4.5 percent on-year in February, its first dip in three months, as the US and China-bound shipments weakened.

The dip was preceded by a 6.4 percent gain in January.

According to the Ministry of Finance, there is a decline in US-bound shipments of automobiles. However, US recovery prospects may ease concerns about Japan's economic outlook.

US-bound shipments plummeted 14 percent on-year in February, stunted by automobiles, airplane parts, and motors, after a 4.8 percent decline drop in January and posting a fourth straight month of decreases.

Exports to China increased 3.4 percent on-year in February, sharply slowing from a 37.5 percent surge in January. It was led by chip-making equipment, nonferrous metals, and plastic.

Japan's exports to Asia, which accounts for over half of its total, slipped 0.8 percent on-year, while those to the EU European Union fell 3.3 percent.

The world's third-largest economy is trying to prop up growth, and the export drop is a source of concern.

The country's imports soared 11.8 percent on year in February, following a 9.5 percent plunge in January. It was the first gain in 22 months due to a pick-up in domestic demand, inventory restocking, and rises in crude oil and resources prices.

The trade balance came to a surplus of $2 billion.