Japan Will Accelerate Its Indian Imports As The Rebuilding Process.

As for the massive results that caused by the devastating quake that hit the nation on March 11, the Japanese economy will increase its iron ore imports from India as the rebuilding process.

Moreover, the increases in exports of items ranging from raw material to pharmaceuticals is part of an Indian government strategy for boosting trade to $1.1 trillion by 2014, and the shipments volume will be at least 1.3 billion metric tons from 574 million last year. Higher iron ore shipments will allow the government to increase export taxes.

Meanwhile, the Japanese economy is trying to introduce more of stimulus to help the economic recovery to stand once again during the first nine months of the year, where the Bank of Japan kept the rates unchanged steady near zero between "0.0% to 0.10%", while the Governor indicated that the Bank is ready to easy monetary policy further if needed.

The machinery order rebounded even after the plants have shut along with power shortages and a shortfall in supply of parts.

The government is asking companies and households to restrict power use by 15% this summer, less than its earlier prediction that savings of at least 20% would be necessary. Tokyo Electric Power Co. said on May 13 it plans to raise its power capacity to 56.2 million kilowatts by the end of August, 94% of last year.

Japan’s economy probably contracted at an annual 2% pace in the three months ended March 31 as expected, which would be the first time the economy shrank for two straight quarters since the global financial crisis.

The central bank will “carefully monitor” whether sustained gains in oil gains will spur inflation expectations, Governor Masaaki Shirakawa said on April 28. Further, the March 11 earthquake may only have a small effect on Japan’s prices.

Today, Japan's tertiary industry index monthly reading dropped by 6.0% in March, compared with a previous reading of 0.8% in June, which was revised to 1.0%, while the actual reading came lower than analysts' expectations that referred to -5.8%.

Source : actionforex.com