(Bloomberg) --Japanese export growth accelerated to the fastest pace in more than a year, with stronger demand from Asia and the U.S. supporting a recovery in the world’s third-biggest economy.
Overseas shipments rose 17 percent in January from a year earlier, the finance ministry said Thursday, exceeding a median 13.5 percent forecast. Imports fell 9 percent, leaving a trade deficit of 1.2 trillion yen ($9.9 billion), narrowing from last January’s record shortfall of 2.8 trillion yen.
Rising shipments of automobiles and semiconductors are helping Japan’s economy, which struggled out of recession last quarter amid weaker-than-forecast consumer spending and business investment. The tumble in oil prices cut Japan’s import costs, reducing the deficit.
“Japanese exporters finally responded to the weakness of the yen. It took nearly two years - a much longer time-lag than we originally had expected,” said Masaaki Kanno, economist at JPMorgan Chase & Co., who forecasts a return to a trade surplus next quarter or even earlier.
“Export volume seems to have picked up because of the weak yen and also the gradual recovery of the global economy.”
The Nikkei 225 Stock Average was headed Thursday for the highest close in 15 years amid speculation the Federal Reserve will keep U.S. interest rates near zero for longer. The stock index rose 0.4 percent at 11:07 a.m. in Tokyo.
The yen was up 0.2 percent at 118.60 against the dollar, having lost 22 percent since the Bank of Japan began unprecedented monetary stimulus in April 2013 in an effort to reflate the economy.
Economy Rebounds
The central bank Wednesday gave a more upbeat assessment of exports than last month, saying they have been “picking up.”
Export volumes climbed 11 percent, driven by a 15 percent rise in shipments to Asia. The value of Japan’s sales to Asia was the largest-ever for January, according to the finance ministry.
Automobiles were the biggest driver of export growth in January, with the value of car shipments to the U.S. rising 14 percent and that to the EU up more than 16 percent.
Exports of semiconductor components rose 24 percent, the second-largest contribution to the jump in total shipments.Much of the decline in imports stemmed from lower energy prices.
The value of crude oil imports fell almost 41 percent, while that of liquid petroleum gas dropped 40 percent.
Gross domestic product grew 0.6 percent in the three months ended Dec. 31, less than economists forecast, after contracting for two straight quarters. Net overseas shipments, which is exports minus imports, added 0.2 percentage point to the expansion.
yahoo.com
Overseas shipments rose 17 percent in January from a year earlier, the finance ministry said Thursday, exceeding a median 13.5 percent forecast. Imports fell 9 percent, leaving a trade deficit of 1.2 trillion yen ($9.9 billion), narrowing from last January’s record shortfall of 2.8 trillion yen.
Rising shipments of automobiles and semiconductors are helping Japan’s economy, which struggled out of recession last quarter amid weaker-than-forecast consumer spending and business investment. The tumble in oil prices cut Japan’s import costs, reducing the deficit.
“Japanese exporters finally responded to the weakness of the yen. It took nearly two years - a much longer time-lag than we originally had expected,” said Masaaki Kanno, economist at JPMorgan Chase & Co., who forecasts a return to a trade surplus next quarter or even earlier.
“Export volume seems to have picked up because of the weak yen and also the gradual recovery of the global economy.”
The Nikkei 225 Stock Average was headed Thursday for the highest close in 15 years amid speculation the Federal Reserve will keep U.S. interest rates near zero for longer. The stock index rose 0.4 percent at 11:07 a.m. in Tokyo.
The yen was up 0.2 percent at 118.60 against the dollar, having lost 22 percent since the Bank of Japan began unprecedented monetary stimulus in April 2013 in an effort to reflate the economy.
Economy Rebounds
The central bank Wednesday gave a more upbeat assessment of exports than last month, saying they have been “picking up.”
Export volumes climbed 11 percent, driven by a 15 percent rise in shipments to Asia. The value of Japan’s sales to Asia was the largest-ever for January, according to the finance ministry.
Automobiles were the biggest driver of export growth in January, with the value of car shipments to the U.S. rising 14 percent and that to the EU up more than 16 percent.
Exports of semiconductor components rose 24 percent, the second-largest contribution to the jump in total shipments.Much of the decline in imports stemmed from lower energy prices.
The value of crude oil imports fell almost 41 percent, while that of liquid petroleum gas dropped 40 percent.
Gross domestic product grew 0.6 percent in the three months ended Dec. 31, less than economists forecast, after contracting for two straight quarters. Net overseas shipments, which is exports minus imports, added 0.2 percentage point to the expansion.
yahoo.com
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