Japan Exports Rise in April but Trade Deficit Remains

Japan’s exports are expected to have risen in April from a year earlier for a second straight month led by U.S.-bound shipments of cars and Asian demand for electronics parts in a sign a weak yen and global recovery are helping the export-reliant economy.

However, the Ministry of Finance (MOF) data due on Wednesday is also likely to highlight the costs associated with a weak currency, with the country expected to log its 10th straight month of trade deficits in April, as a higher import bill offsets export gains.

The median forecast was for a 5.9 percent increase in exports in the year to April, which would follow a 1.1 percent rise in March, a Reuters poll of 25 economists showed.

The data could provide another encouraging signal for Prime Minister Shinzo Abe’s aggressive policies as he seeks to maintain high support in the run-up to an upper house election in July.

via Reuters

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