Japan Sept exports beat forecasts despite strong yen

TOKYO, Oct 24 (Reuters): Japan's exports rose at a faster pace than expected in the year to September, suggesting that resilience in exports is underpinning the economic recovery despite a global slowdown and the strong yen. Finance ministry data published Monday bodes well for the Bank of Japan (BoJ) which has stuck to its forecast of a moderate recovery, driven by the strength of emerging markets and rebuilding from a devastating March earthquake and tsunami. The central bank meets Thursday and will probably cut its economic forecasts because of slowing global growth, but keep monetary policy unchanged unless European debt crisis talks disappoint and trigger market upheaval. 'The pace of recovery in exports is clearly slowing, and I'm not too optimistic about the outlook. The impact from slowing global growth will be felt more strongly, as well as the effect of yen rises,' said Yoshiki Shinke, chief economist at Dai-Ichi Life Research Institute. 'The Bank of Japan will likely stand pat this week. If it were to ease, it would be in response to sharp yen rises.' The yen's persistent strength against the dollar continues to cloud the outlook for the world's No 3 economy, which relies on exports as its main growth engine.