Japan logs surprise trade surplus

Japan logged a surprise trade surplus of ?32.9 billion (US$394 million) last month, offering a glimmer of hope for its moribund economy, but economists warned that with oil prices heading higher the outlook remained uncertain.

The export-led boost reversed a monster deficit of ?1.48 trillion in January, largely thanks to a recovering auto industry and signs that the US? economy is picking up, even though the European market remains weak.

Last month?s trade surplus, the first in five months, was still dwarfed by the surplus of ?636.99 billion posted in the same period a year ago.

?It was quite a surprise,? said Taro Saito, a senior economist at Tokyo-based NLI Research Institute. ?It was not expected that the decrease in exports would shrink this much.?

One of the largest contributing factors was ?the US economy, which is picking up much faster than expected,? Saito said, adding, however, that he expects Japan?s trade balance to fall back into the red this month.

Auto exports to the US rose 26.9 percent from a year earlier while sales of steel and construction and mining machinery also expanded, the official data showed.

?The auto industry is recovering quickly and doing well also in the domestic market. The upbeat US economy is helping the increase in exports of cars,? Saito said.

Overall Japan?s exports fell 2.7 percent from a year earlier to ?5.44 trillion last month on weaker demand for products including steel, medical products and semiconductors, finance ministry data showed.

Imports increased 9.2 percent to ?5.41 trillion for the month on strong demand for crude oil and liquid natural gas, marking the 26th consecutive month of gains in imports.

Yasuo Yamamoto, senior economist at Mizuho Research Institute, said trade figures in March may dip back into the red on rising crude oil prices.

?The figures are likely to hover between small deficits and surpluses for the time being,? he said.

Source: http://libertytimes.feedsportal.com/c/33098/f/535603/s/1db12fd0/l/0L0Staipeitimes0N0CNews0Cbiz0Carchives0C20A120C0A30C230C20A0A3528451/story01.htm

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