Japanese Exports Snap Decline, rise for First Time in 15 Months

Japanese exports snapped run of declines and rose for the first time in 15 months in December driven by strong sales of electronics and car parts. Data released by the Ministry of Finance on Wednesday showed that Japan’s exports rose 5.4 percent year-on-year in December, compared with a 1.2 percent annual increase expected by economists in a Reuters poll and followed an annual 0.4 percent decline in November.

Japan on Wednesday reported its first annual trade surplus since the 2011 Fukushima nuclear disaster. Japan posted a 4.07 trillion yen ($35.8 billion) annual trade surplus in 2016, the first since 2010 as imports in 2016 fell nearly 16 percent, mainly due to the falling cost of crude oil and liquified natural gas.

“The first rise in export values in more than a year reflects a combination of soaring export volumes and the recent depreciation of the yen,” Capital Economics said in a commentary.

However, weaker exchange rate tends to lift import prices which could weigh on trade surplus. Also, Japan now faces a good deal of uncertainty about the future of trade, including possible U.S. trade barriers, whether aimed at Japan or key trading partner China.

The material has been provided by InstaForex Company – www.instaforex.com

Japanese Exports Snap Decline, rise for First Time in 15 Months

Japanese exports snapped run of declines and rose for the first time in 15 months in December driven by strong sales of electronics and car parts. Data released by the Ministry of Finance on Wednesday showed that Japan’s exports rose 5.4 percent year-on-year in December, compared with a 1.2 percent annual increase expected by economists in a Reuters poll and followed an annual 0.4 percent decline in November.

Japan on Wednesday reported its first annual trade surplus since the 2011 Fukushima nuclear disaster. Japan posted a 4.07 trillion yen ($35.8 billion) annual trade surplus in 2016, the first since 2010 as imports in 2016 fell nearly 16 percent, mainly due to the falling cost of crude oil and liquified natural gas.

“The first rise in export values in more than a year reflects a combination of soaring export volumes and the recent depreciation of the yen,” Capital Economics said in a commentary.

However, weaker exchange rate tends to lift import prices which could weigh on trade surplus. Also, Japan now faces a good deal of uncertainty about the future of trade, including possible U.S. trade barriers, whether aimed at Japan or key trading partner China.

The material has been provided by InstaForex Company – www.instaforex.com