Widening surplus in the Japanese merchandise trade balance along with falling exports

A report today showed that Japan's merchandise trade balance surplus widened during the month of September along with the nation's exports grew at the slowest peace this year, signaling that recovery in the nation is losing steam, while the economy is losing its main engine for economic growth as cooled the global demand.
Japan's merchandise trade balance rose to 687.0 billion yen during September, compared with a previous reading of 103.2 billion yen in August, which revised to 86 billion yen, while the analyst's expectations referred to 710 billion yen.
Japan's adjusted merchandise trade balance inclined to 587.6 billion yen in September, compared with a prior reading 589.7 billion yen during August that revised to 570.2 billion yen, and the actual reading came higher than analyst's expectations that predicted of 495.5 billion yen.
Furthermore, the Japan's merchandise trade exports (YoY) came at 14.4 during the month of September, compared with a previous 15.3, while the expectations estimates of 23.5. Also the Japan's merchandise trade imports (YoY) came at 9.9 in September, compared with a prior reading 17.9, whereas the anticipations referred to 7.4.
According to today's report showed that the Japan's exports sector remain weak, and Japanese export-fueled rebound is losing momentum, increasing the pressure on Bank of Japan to find new ways to support the economy, and on the government to execute its stimulus plans which working to support the economy recovery.
The Prime Minister Mr. Naoto Kan approved during this month to pump a 5.1 trillion yen (62 billion U.S. dollars) stimulus plan to keep the economy on the track to recovery, and help local government and small business cope with the yen's appreciation.
On the other hand, Fundamentals confirm the weakness of the economic recovery in Japan; Tertiary index recorded the first drop in three months, showing that Japan suffers from weakness in domestic spending along with the decline in exports, weakening the Japanese economy as a whole.
The stronger currency is helping the nation's exports to decline, where Honda Motor Co. (which is the world's largest manufactures of motorcycles and the second biggest automaker in Japan) is under threat as a higher yen along with the Japanese companies' overseas exports.
Analysts said "Japan will be teetering on the brink of recession over the coming year and downgrading their forecast for Japanese growth to 0.5 percent from 1.1 percent for the year starting April 2011,"
Japan's government cut its evaluation of the economy for the fist time in 20 months last week, highlighting weakening the exports to Asian nations. China's demand may retreat after the PBOC increased the interest rate to 5.56% for the first time since the crisis began in 2007.
While, the Bank agreed to buy corporate and government bonds at maturity from one year to two years in a new 5 trillion yen fund. The Bank kept monthly purchases of government bonds at 1.8 trillion yen, along with the credit program by 30 trillion yen