Japan Logs $4b Trade Surplus in October
Japan Logs $4b Trade Surplus in October

Japan Logs $4b Trade Surplus in October

Japan Logs $4b Trade Surplus in October

Japan saw its second consecutive trade surplus in October, official data showed on Monday, though it came in below expectations as a strong yen dented exports.
While the yen has tumbled in November on the back of Donald Trump’s US election win, it was up almost 15% on-year against the dollar last month, which the finance ministry said hit export values for key products such as vehicles and steel, AFP reported.
However, the weak reading was offset by a fall in imports, with crude oil and liquefied natural gas down significantly, according to the ministry.
The country posted a surplus of 496.2 billion yen ($4.48 billion), smaller than the 610 billion yen forecast in a Bloomberg News survey.
“Even though the drag from the stronger yen has started to fade, the annual growth rate of both export and import values fell deeper into the red last month,” Marcel Thieliant, senior Japan economist at Capital Economics, said in note.
Japan last week reported the world’s number-three economy expanded more than expected in the third quarter as exports offset slack consumer spending, some rare good news for Prime Minister Shinzo Abe’s struggling growth drive.
Analysts said Japan’s exports are expected to give a boost to economic growth in October-December because of the sharply weaker yen.
Traders are shifting out of the yen and into the dollar on expectations Trump’s plans to ramp up infrastructure spending and cut taxes will fan inflation, which will in turn force the Federal Reserve to lift interest rates.
“Looking ahead, the yen has weakened sharply since the US elections and we expect it to decline further next year, which should lift trade values,” Thieliant said.


Short URL : https://goo.gl/b7d49P
  1. https://goo.gl/wCWbze
  • https://goo.gl/mqZXY2
  • https://goo.gl/dPhcbG
  • https://goo.gl/sH1tWM
  • https://goo.gl/pjK7DU

You can also read ...

Venezuela Devalues Currency by 95 Percent
Venezuela devalued its currency by about 95% ahead of the Aug...
The average annual salary for K–12 public-school teachers is roughly $58,000, and they typically spend a sizable chunk  of that on classroom supplies integral to their jobs
Airbnb, the popular platform that lets people rent out their...
Nigeria CB Reports $91b FX Inflow in 2017
The Central Bank of Nigeria, said the aggregate foreign...
S&P, Moody’s Lower Turkey Ratings
Two major global ratings agencies lowered Turkey’s ratings Aug...
Egypt Keeps Rates Steady
Egypt’s central bank left its main interest rates unchanged,...
Argentina Says Poverty to Rise as Economy Slumps
More Argentines are likely living in poverty now compared with...
Russia’s largest electronics chain, M. Video, estimates that about a fifth of its products are bought with credit  or on installment plans as people are more confident about the future.
Russian consumers are borrowing like the boom times are back...
Long Road to Greek Recovery
On Monday, Greece exits the third and final bailout program of...

Add new comment

Read our comment policy before posting your viewpoints