UPDATE 1-Singapore exports unexpectedly up but outlook cloudy

(Adds economists' quotes, details)

By Koh Gui Qing

SINGAPORE, May 16 (Reuters) - Singapore's non-oil exports unexpectedly rose in April, easing fears that Asian exports would plummet as the continent's key U.S. market teeters on the brink of recession, but economists said the outlook was still cloudy.

Non-oil exports rose 1.6 percent in April from March after seasonal adjustments, compared with market expectations for a 0.5 percent drop. This follows a 2.6 percent fall in March when shipments to the United States fell at the sharpest rate in more than six years.

Singapore's economy is heavily dependent on trade, and non-oil domestic exports were worth three quarters of gross domestic product last year. Analysts said the surprise strength in exports reflected an annual rise of 15.2 percent in petrochemical shipments amid record oil prices.

"Overall the support is still in non-electronics, notably in petrochemicals. But the picture is still one of softness ahead," said Vishnu Varathan, an economist at Forecast.

Non-oil exports in April rose 5.4 percent from a year earlier to S$14 billion ($10.2 billion), trade agency International Enterprise Singapore said in a statement. That compared with a 5.9 percent fall in March, and with a median forecast in a Reuters poll for an annual drop of 0.5 percent.

Electronic shipments, which include chips, handphones and cameras and account for about 40 percent of Singapore's non-oil exports, fell at an annual rate of 0.4 percent, the 15th straight month of decline. Consumer electronics exports accelerated their slump to 31.3 percent.

"Electronics is still down year on year though not as bad as in March. While picking up quite a bit month-on-month, it doesn't point to a sustained recovery as yet," said Varathan.