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Japan’s exports nearly halved in January from a year earlier, with record slides in shipments to the United States, Europe and the rest of Asia pointing to a deepening recession across much of the world.

Japanese car exports fell by two-thirds from a year earlier, accelerating from a 45 percent annual decline seen in December, as the value of overall exports hit a 10-year low.

“We don’t see any signs of a pick-up in the Japanese economy in the near term. The economy will gradually worsen further,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“Exports to Asia, particularly to China, are tumbling at about the same pace as shipments to the United States, signaling that even China’s economy may be shrinking,” Minami said.

Many factories in China and elsewhere in Asia use Japanese components to make goods that are ultimately sold in the West.

Federal Reserve Chairman Ben Bernanke warned on Monday of a prolonged recession in the United States, one of Japan’s major markets, and President Barack Obama, while positive for the longer term, told Congress there were no quick fixes for the economy.

Asian countries rely heavily on manufactured exports and have been hit hard as the global financial crisis prompts Western consumers to curtail spending.

“In Asia, the world’s manufacturing plant, the slump in the global economy will continue to weigh on production activities and likely to lead to a further decline in exports of semiconductors,” Kyohei Morita, chief economist at Barclays Capital, said in a report small personal loans.

Japan is among the worst affected with the 45.7 percent plunge in exports in January from a year earlier, a much deeper fall than seen so far in South Korea and China.

For a graphic comparing the three countries’ exports, click: here

January figures were affected by Lunar New Year holidays that closed some key Asian export markets for several days.

Japanese exports to the rest of Asia sank 46.7 percent from a year earlier, the fourth straight month of decline, with shipments to China falling 45.1 percent, data showed on Tuesday.

The decline in Japanese exports to other emerging markets is also accelerating. Sales to Brazil fell 38 percent, more than six times the drop seen in December data.

Japan’s economy shrank last quarter at its fastest pace since the first oil crisis of the 1970s and economists said the latest figures added to concerns that the recession was worsening.

OUTLOOK BLEAK 

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