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 automobiles.

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