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UPDATE 2-Japan Nov exports rise on strong Asian demand

(Adds details of exports, background)

TOKYO, Dec 24 (Reuters) - Japan's exports grew at a brisk pace in November, fuelled by strong demand from Asian neighbours such as China, offsetting worries about possible fallout from a U.S. slowdown, Finance Ministry data showed on Tuesday.

Exports rose 19.2 percent from a year earlier to 4.636 trillion yen ($38.5 billion), the eighth straight month of gains on a year-on-year basis.

The figures appeared to defy growing worries that Japan's export-driven recovery since the start of the year is losing steam.

Cars, office equipment and electronic components led the gains, with Asian countries like China and Thailand among the main buyers.

"Exports to Asia have been strong, as was the case in October," said Minako Iida, economist at Deutsche Securities.

"In the past, the main export market for most Asian countries had been the U.S. But trade within Asia now has a bigger weight and is making the regional economies more resilient to a slowdown in the U.S. or Europe."

A regional breakdown showed exports to Asia increased 26.4 percent year-on-year, while those to the United States rose 17.5 percent.

Exports of motor vehicles to Asia surged 78 percent in terms of units sold.

The fastest growth was to China, where rising incomes, lower prices and reduced tariffs on imported vehicles have fuelled a boom in demand and turned the country into the world's third-largest market for cars.

Passenger car sales in China in the first 11 months of this year topped one million units for the first time ever, and Japanese manufacturers are rushing to keep up.

Honda Motor Co said earlier this month it planned to quadruple output in China.

Component sales to Asia grew 30 percent in November. Japanese companies like Toshiba Corp and NEC Corp supply many of the microchips, display screens and other components used in popular consumer electronic goods from digital cameras to colour-screen mobile phones and DVD players.

Many of these are assembled in China and Southeast Asia to take advantage of lower labour costs.

TRADE SURPLUS UP

Although last year's figures were distorted by the September 11 attacks on the United States, November exports were also up 5.3 percent from October on a seasonally adjusted basis.

The strong rise in exports helped push the customs-cleared trade surplus to a ninth straight month of increase in November, up 80.9 percent from a year earlier at 890.499 billion yen.

The surplus was larger than a median forecast for a 13.9 percent rise to 797.3 billion yen by economists polled by Reuters last week.

Imports were up 10.3 percent at 3.745 trillion yen from a year earlier and up 2.4 percent from a month earlier.

"This year-on-year double-digit gain in the trade surplus is expected to continue going forward due to solid exports," said Shinichi Sato, fixed-income strategist at Mitsubishi Securities.

"On top of growth in exports to Asia, exports to the U.S. and Europe region have bounced," he said.

A ministry official was a bit more cautious.

"We must keep in mind that we're comparing the figures with a year ago, which was really a very low point for the economy," he said. "But that said, the figures also show firm U.S. demand for consumer items including automobiles."

Automobile exports to the United States rose 28.0 percent from a year earlier.

Imaging products, such as plasma television screens and office equipment exports were also strong, as they were to Europe. ($1=120.39 yen)