Japan’s Trade Surplus Hits 1B in August

Japan posted a goods trade surplus of 113.64 billion yen ($1.02 billion) in August, boosted by a surge in U.S.-bound exports of cars and auto parts, government data showed Wednesday.

Exports soared 18.1 percent from a year ago, the fastest pace since November 2013, to 6.28 trillion yen, as shipments of electronic parts also increased. Imports gained 15.2 percent to 6.16 trillion yen amid growth in energy imports in value terms.

The total figure marked a turnaround from a year ago when Japan had a trade deficit of 34.62 billion yen, according to a preliminary report by the Finance Ministry.

Japan’s trade surplus with the United States expanded to 534.70 billion yen after exports gained 21.8 percent to 1.18 trillion yen and imports rose 5.7 percent to 648.75 billion yen.

U.S. President Donald Trump has taken issue with his country’s massive trade deficits with major exporters such as China and Japan.

“The fundamentals (of the global economy) remain good despite uncertainty over U.S. policy and geopolitical risks,” said Yuichiro Nagai, an economist at Barclays Securities Japan Ltd.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza