Production and exports down in Asia

Reports from Japan, China and South Korea point to a steady decline in exports and industrial production, a sign Asia is feeling the recession’s impact.

In Japan, exports have tumbled and a Bank of Japan index gauging sentiment among large manufacturers fell to a record minus 58 in March, down from a December reading of minus 24, The New York Times reported Wednesday.

In China, the purchasing managers index fell in February to 44.8, down from January’s 45.1. The index in which numbers below 50 indicate economic contraction, has marked eroding conditions for eight consecutive months, the brokerage firm that compiles the data, CLSA, reported.

In South Korea, exports dropped 21.2 percent in March compared with a year ago. Imports in the month also declined, falling 36 percent from March 2008, the newspaper said.

The Organization for Economic Co-operation and Development on Tuesday lowered its 2009 forecast for the economy of its 30 members from a mild contraction of 0.4 percent to a far sharper 4.3 percent.

The global recession will worsen this year before a policy-induced recovery gradually builds momentum through 2010, the OECD said.