Japan's tentative export rebound faltered in May as shipments fell 41 per cent by value year on year amid a rising yen and continuing weakness in sales in key markets for the nation's electronics and cars.

While most economists believe the world's second largest economy is bottoming out after suffering its sharpest postwar slump, yesterday's trade statistics highlight the shallow roots of a recovery likely to remain highly reliant on external demand and debt-funded fiscal stimulus.