July exports fall 0.3, versus forecast for 0.8 drop
China slowdown fuels fear of world recession
Trade balance swings into red again
Key gauge of capex up 2.7 mm in June, outlook weak

TOKYO, Aug 17 Reuters Japan39;s exports fell in July for the first time in nearly 212 years, dragged down by faltering demand for light oil and chipmaking equipment, underlining concerns about a global recession as key markets like China weakened.

Ministry of Finance MOF data out Thursday showed Japanese exports fell 0.3 in July yearonyear, compared with a 0.8 decrease expected by economists in a Reuters poll. It followed a 1.5 rise in the previous month.

Separate data by the Cabinet Office showed a key gauge of capital expenditures rose in June. However, manufacturers are braced for core orders to slide during the current quarter, partly due to the impact from weak offshore demand.

Overall, the batch of data underscored fragility in Japan39;s export engine that helped underpin second quarter domestic product GDP growth, with car shipments and inbound tourism the biggest drivers.

Japanese policymakers are counting on exports to shore up the world39;s No. 3 economy and pick up the slack in private consumption that has suffered due to broader price hikes.

However, the spectre of a sharper global slowdown and faltering growth in its major market China have raised concerns about the outlook.

The World Bank has warned that higher interest rates and tighter credit will take a bigger…