TOKYO: Japan’s exports posted another gain in November as the yen’s weakness helped exporters, although the underlying trend in trade remained lacklustre ahead of this week’s Bank of Japan meeting.
Exports measured in value rose 3.8% from a year ago led by chip-making machinery and non-ferrous metals while cars dragged on shipments, the Finance Ministry reported yesterday.
That beat the consensus estimate of a 2.5% increase.
Imports fell 3.8% led by crude oil, but still left a negative trade balance of 117.6 billion yen.
While the value of exports rose, trade is giving limited support overall to the Japanese economy.
Demand in the United States and Europe continued to wane while it rose in China, where the government is trying to support growth with aggressive stimulus measures.
Measured in volume, exports were barely changed. Shipments to the United States declined 8% led by cars and medicine, and those to Europe sank 12.5% also led by autos, the report showed. Shipments to China rose 4.1%.
“A drop in auto exports is keeping a lid on overall exports because it’s such a major sector for Japan,” said Takeshi Minami, economist at Norinchukin Research Institute.
“The global economy is not stalling or accelerating, making it hard for overall exports to increase.”
Overall, yesterday’s data showed the trade balance stayed negative for a fifth consecutive month, suggesting that broader trade conditions are likely to keep weighing on the economy in the final quarter.
Net trade was also a drag on the economy in the three months ended September.
The yen averaged 152.83 per dollar in November, 1.7% weaker than a year ago, the report said. A weaker yen tends to help exporters become more competitive as it inflates their overseas earnings when brought home. — Bloomberg
