Japan's April exports disappoint even as 'Abenomics' weakens the yen

Japan's exports rose less than expected in April from a year earlier due to weak demand from Europe and China, highlighting the challenges confronting the world's third-biggest economy as policymakers try to engineer a sustained revival.

The 3.8 per cent annual increase in exports in April was below the median estimate for a 5.9 per cent rise and followed a 1.1 per cent increase in the year to March.

The result also underscores the limitations of a weak yen in bolstering the trade sector, especially as external headwinds crimp demand for exports.

The uncertainty was underlined recently by weak data from the United States and China, Japan's major export markets.

Prime Minister Shinzo Abe's policy mix of sweeping fiscal and monetary stimulus, dubbed "Abenomics", has driven the yen to a 41/2-year low against the US dollar and boosted Tokyo shares by 70 per cent since November.

However, the benefits of a weak yen has not been fully reflected in the trade sector, partly because manufacturers have been moving production overseas.