The gloom is lifting a bit from the Japanese economy, as sharp growth from China and other Asian neighbours is lifting exports and spurring more capital spending by the nation’s manufacturers, though Beijing’s recent moves to prevent overheating could limit Tokyo’s recovery.
While the spotlight in recent weeks has been on the travails of two corporate icons – quality problems at Toyota Motor Corp. and the bankruptcy of Japan Airlines Corp. – profits for most Japanese companies surged at the end of 2009, while the economy grew at a pace of faster than four percent annualised for the three months ended 31 December.