As far as my experience, "How are you?" is one of the most difficult phrases to reply for most of Japanese. Of course, we learned in school how to reply.
Thus,
"I am fine thank you, and you?"
However, the first thing Japanese thinks is that "Am I really fine? I think I am getting cold. Additionally, I have a hangover. Is it OK to say I am fine???"
Next, people think that if "I am fine thank you, and you" is too stereotype and/or sounds like a beginner of English. So maybe most of people try to use another phrases.
As a result, some people loose words and just smile.
Please be patient if you would see Japanese struggle and just keep silent.
Japanese just wanted to express welcome, hospitality, and hopefully English skill.
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