Japan and China

exports: It followed a 2.4 percent year-on-year rise in May, according to Euro News. Policymakers are counting on exports to supplement Japan domestic-demand driven economy, but China slowing economy is becoming more of a risk to the outlook and could curb Japan growth by slowing its exports. Exports rose an annual 9.5 percent in June, less than the median estimate for a 10.0 percent by economists in a Reuters poll. I expect gradual recover in exports but there are downside risks, because exports to China may not do that well, said Shuji Tonouchi, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities. Exports destined for China, Japan largest trading partner, rose 5.9 percent in June from a year ago, compared with May 1.1 percent annual increase as shipments of electronics and plastics rose. The pace of Japan economic growth could depend more on domestic capital expenditure, but growth may not be strong enough to meet the Bank of Japan expectations, he said. (news.financializer.com). As reported in the news.