Econintersect: Japan reported that exports increased to ¥5.77 trillion ($60.5 billion) in May 2013, up 10.1% compared to May 2012. This was the biggest gain in more than three years. The increase was virtually all due to a weaker yen – export volumes actually decreased by 4.8%. This was the 12th consecutive month with declining export volume. Imports also increased in May resulting in a trade deficit for the 11th straight month.
Japan has had a negative balance of trade for 19 of the last 24 months.
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Japan continues to have a positive current account balance which adds net factor income from investments and any other transfer payments to the trade balance.
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Asian stocks were generally higher Wednesday, boosted by the Japanese economic news which overcame some trepidation about what actions the Federal Reserve might announce in the U.S. later today.
Sources:
- Japan’s export value rises at fastest pace in three years (Jonathan Soble, Financial Times, 19 June 2013)
- Asian Stocks Advance as Japanese Exporters Gain on Weaker Yen (Jonathan Burgos, Bloomberg Businessweek, 18 June 2013)
- Japan Balance of Trade (Trading Economics)
- Japan Current Account (Trading Economics)
