Japan Returns to Trade Surplus in

June Due to Export Growth

Connor Cislo
Bloomberg19 July 2017

(Bloomberg) -- Japanese trade returned to surplus in June, with both
imports and exports continuing the strong growth they have had all year.

Highlights

Exports rose 9.7 percent from a year earlier (estimate 9.5 percent).

Imports increased 15.5 percent (estimate 14.4 percent).

The trade surplus was 439.9 billion yen ($3.9 billion) (estimate +488 billion
yen).

Key Takeaways
The data come hours before the Bank of Japan is expected to announce
that it’s keeping monetary policy unchanged. The nation’s modest
economic recovery reflected in the trade data and the move to tighter
policy by other major central banks is putting pressure on policy makers
in Japan to be clearer about their plans to normalize monetary policy.

Some lawmakers are starting to press the BOJ to communicate more
openly about its future exit strategy, and the BOJ is re-calibrating its
communications on the subject while firmly maintaining that such a
policy change won’t happen anytime soon, according to people with
knowledge of discussions at the central bank.

Economist Views

 The demand outlook in Asia had
been a particular concern for
Japanese exports, wrote Yuichiro
Nagai and Yukito Funakubo of
Barclays Securities Japan Limited in

James Mayger ©2017 Bloomberg L."  Exports are likely down from the large bounce in May. Japan’s largest trading partner.net.6 percent.P. she wrote. the continuing global recovery means that export growth should continue.S.  Those to the EU climbed 9. rose or 7. --With assistance from Tomoko Sato To contact the reporter on this story: Connor Cislo in Tokyo at ccislo@bloomberg. . but positive indicators from the region in June mean that Asia-bound shipments should "hold firm. To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.  Shipments to the U.1 percent. However.5 percent from a year earlier. an economist at Dai-Ichi Life Research Institute. writing before the release. increased 19. according to Mana Saito. a note before the data were released. Other Details  Exports to China.net.