Japan's exports rise for 2nd straight month, trade surplus continuing

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TOKYO, Nov. 25 Kyodo -
Japan posted a trade surplus for the ninth straight month in October, with
exports increasing for the second month running, helped by growing demand from
the rest of Asia for high-tech products, the Finance Ministry said Wednesday.
The surplus amounted to 807.09 billion yen, the largest since March 2008, the
ministry said in a preliminary report. Exports fell 23.2 percent from the year
before to 5,308.87 billion yen -- though this is the best level since last
November. Imports shrank 35.6 percent to 4,501.78 billion yen.
Compared with September, exports increased from 5,110.21 billion yen, while
imports decreased from 4,584.92 billion yen.
The data show the pace of contraction in exports has further slowed since the
beginning of this year's serious slump, while signaling that the nation's
domestic consumption remains weak on the back of falling incomes.
Japan's exports have recovered about 50 percent since January, when they fell
to their lowest level of 3,480.40 billion yen in the wake of the worst
recession in decades triggered by the bankruptcy of Lehman Brothers Holdings
Inc. in September 2008.
In terms of volume, shipments of such as auto parts, steel products and
integrated circuits grew even on a year-to-year basis.
Hiroshi Miyazaki, chief economist at Shinkin Asset Management Co, said a rise
in exports driven by Asian demand was ''better-than expected,'' but signs of
improvements in external demand would not immediately lead to more confidence
in the domestic economy.
''The flow of capital to Japanese financial markets is sluggish,'' partly
because ''a rise in the yen is preventing many companies from enjoying the
benefits brought about by a pickup in exports,'' Miyazaki said.
With the rest of Asia, Japan's trade surplus jumped 82.3 percent to 827.03
billion yen, expanding for the second straight month.
Exports to other Asian economies totaled 2,882.14 billion yen, the highest
level since last October, as shipments of semiconductors and steel products
were upbeat.
But Japan posted a trade deficit with China, its largest trading partner, for
the fourth straight month, amounting to 26.22 billion yen.
Exports to China fell 14.3 percent from the previous year to 993.43 billion
yen, down for the 13th straight month. Imports declined 26.6 percent to
1,019.66 billion yen.
Still, exports to China, which is on track to soon overtake Japan as the
world's second-largest economy, hit the highest level since last October.
Japan's trade surplus with the United States fell 27.7 percent from a year
earlier to 369.63 billion yen, down for the 26th straight month.
Exports to the U.S. market fell 27.6 percent to 873.73 billion yen, compared
with 835.01 billion yen in September.
The trade surplus with the European Union shrank 40.8 percent to 210.80 billion
yen, with exports totaling 667.55 billion yen.
Trade figures are measured on a customs-cleared basis before adjustment for
seasonal factors.
==Kyodo
2009-11-25 22:58:14