Japan logs trade surplus for 6th straight month in Nov.

December 18, 2017

Tokyo- Japan's customs-cleared trade balance was in the black for the sixth straight month in November, but the surplus dropped 22.6 percent from a year before due to growth in imports reflecting higher natural resources prices, government data showed Monday.

The country's trade surplus stood at 113.4 billion yen in November, compared with 146.5 billion a year before, the Ministry of Finance said in a preliminary report.

The November result came against a median forecast of 8.2 billion yen in deficit among 21 research institutes surveyed by Jiji Press.

In trade with mainland China, Japan's exports soared 25.1 percent to 1,379.7 billion yen, hitting a record high for the second consecutive month, led by strong demand for equipment to produce liquid crystal displays for smartphones and television sets as well as to make semiconductors used in vehicles.

Japan's imports from China grew 21.6 percent to 1,810.7 billion yen.

As a result, Japan incurred a trade deficit of 431 billion yen with China, compared with the year-before deficit of 385.4 billion yen.

Japan's overall exports in November increased 16.2 percent to 6,920.4 billion yen, up for 12 months in a row.

In addition to growth of exports to China, Japan enjoyed brisk U.S.-bound shipments of automobiles with engine displacements of between 1,500 cc and 2,000 cc.

Total imports rose 17.2 percent to 6,807.1 billion yen, pushed up by a rise in imports of crude oil from Saudi Arabia and smartphones from China. Japan's import bill was also boosted by higher crude oil and coal prices.

The yen's weakening against other major currencies helped the growth in both exports and imports.

In trade with the United States, Japan's surplus expanded 13.7 percent to 660.1 billion yen, up for the fifth straight month, despite US President Donald Trump's calls for reductions in his country's trade deficits.

Exports to the United States increased 13 percent 1,368.6 billion yen, while imports from the country were up 12.3 percent at 708.6 billion yen. Jiji Press