Japan Trade Data On Tap For Monday

Claudine Rigal
Juin 21, 2017

Exports to China jumped 23.9 percent to 1.12 trillion yen while imports were up 9.6 percent to 1.43 trillion yen, leading to a 311.84 billion yen trade deficit.

The yen was 2.3 percent weaker against the dollar compared with a year earlier, and this helped push up import costs.

Strong exports have buoyed Japan's moderate but stable growth.

Nagai said there was no need to be overly pessimistic over figures for a single month.

The data for May showed "a correction in speed" but the economy is likely to resume expansion in the July-September quarter, even if it stalls in the April-June quarter, he said.

Chinese shares .CSI300 advanced 0.55 percent after data showed home prices rose 10.4 percent in May from a year ago, although slowing from April's 10.7 percent gain.

"The main scenario is Japan's exports will continue to recover", said Shuji Tonouchi, senior market economist at Mitsubishi UFJ Morgan Stanley Securities.

Exports of cars and auto parts rose partly because an natural disaster in Kumamoto previous year in May temporarily shut down production of these goods, Tonouchi noted.

However, the 14.9% annual increase in exports for the month of May was actually below the street estimates.

Of Japan's 42 workable nuclear reactors, only five are now in operation amid lingering public worries about nuclear power generation following the disaster.

The trade surplus with the United States was 411.1 billion yen ($3.71-billion) in May, up 19.0 per cent from the same period a year ago.

The Japanese yen traded lower after the release, with the US dollar gaining 0.2% to ¥110.92.

The country tends to post a trade deficit in the month of May due to the Golden Week holidays that weigh on exports from Japan.

Despite the uptrend in the overall economy, consumer prices remain below the Bank of Japan's two percent inflation target.

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