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Japanese exports rose 27.7 percent in June from a year earlier, more than the expected 23.5 percent. But the pace of the increase continues to slow, indicating economic recovery may be losing steam on moderate overseas demand.
Exports to Asia account for more than half of Japan's total exports. That rose 32 percent compared to a year ago, a slowing for the fifth straight month.
Analysts say the outlook is uncertain for Japan's export-reliant economy, due to the yen's recent gains and signs of slowdown in the U.S. and China. They're suggesting the Bank of Japan loosen monetary policy, and consider the impact of the yen's appreciation on the competitiveness of Japanese goods.