The volume of automobile shipments to Asia fell 32

This is a very positive development for Saturday's game. . (For more stories on the Japanese economy, click ID:nECONJP) Currencies Global Markets TOKYO, Jan 22 (Reuters) - The Bank of Japan kept interestrates unchanged on Thursday and said it will examine buyingcorporate bonds to ease credit strains for companies as thenation's recession deepens The decision on rates was unanimous. Japan slipped into its first recession in seven years in thethird quarter of 2008 and may go through a deeper slump insubsequent quarters as exports and output have tumbled since lastSeptember due to the global economic slump. The BOJ cut rates to 0.10 percent from 0.30 percent lastmonth.

(Reporting by Leika Kihara and Yuzo Saeki) Currencies Global Markets. (For more stories on the Japanese economy, click ID:nECONJP) (Adds comments, details) Currencies Bonds Global Markets China By Yuzo Saeki and Hideyuki Sano TOKYO, Jan 22 (Reuters) - Japanese exports plunged a record35 percent in December from a year earlier as Asian consumersbuckled under the global financial crisis and a U.S recessioncrushed demand for electronics and autos. Collapsing exports probably pushed Japan deeper in torecession in the fourth quarter, and with the global economycrumbling and the yen at 13-year highs against the dollar, therewas no light at the end of the tunnel, analysts said. Imports slumped in December, signalling sinking domesticdemand, and a survey showed business sentiment tanking, adding tothe problems the Bank of Japan must grapple with as its reviewspolicy on Thursday.

"Exports are likely to continue to fall at least until thefirst quarter of this year and possibly longer." Exports to Europe, the United States and the rest of Asia allfell at a record pace in December. While exports to the United States have falling since theU.S. mortgage defaults mutated in to a global credit crisis 17months ago, Asian demand held up for most of last year Nowregional shipments are tumbling just as fast. Exports to Asia sank 36.4 percent, the third straight monthof decline Shipments to China fell 35.5 percent. TECH SLUMP Most of the decline was to due to falling demand forelectronic parts to China, South Korea, Hong Kong and Malaysia,where technology factories are shutting down in the face of therecession in their biggest market, the United States, a financeministry official said.

recession is still the main drag on Asiantrade, there are signs the global financial crisis is ripplingacross Asian economies, forcing consumers and companies that wereonce expected to be drivers of growth to shrink from spending. The volume of automobile shipments to Asia fell 32.9 percentin December from a year earlier, a finance ministry officialsaid, almost twice as fast as previous month. Shipments to China of chemicals used in the constructionindustry also fell, the official said. China, the world's third largest economy after the UnitedStates and Japan, hit a wall in the fourth quarter, growing at6.8 percent. Annual growth of 9 percent in 2008 was the weakestin seven years. "The sharp fall in exports to Asia shows that worseningeconomic conditions in the United States and Europe are damagingAsian economies," said Yoshiki Shinke, senior economist atDai-ichi Life Research Institute. Exports to United States plunged 36.9 percent as automobileshipments sank It was the 16th straight month of decline.