Japan’s exports rise for fourth straight month, partly boosted by weaker yen

[TOKYO] Japan’s exports rose for a fourth straight month in December, government data showed on Thursday, as slower shipments to the US were offset by strong demand elsewhere as well as by a boost to sales from the yen’s decline.

Total exports by value rose 5.1 per cent year-on-year in, data showed, less than a median market forecast for a 6.1 per cent increase and after a 6.1 per cent rise in November.

Exports to the United States fell 11.1 per cent in December from a year earlier, while those to China were up 5.6 per cent, the data showed.

Imports grew 5.3 per cent in December from a year earlier, compared with market forecasts for a 3.6 per cent increase.

As a result, Japan ran a trade surplus of 105.7 billion yen (S$857 million), compared with the forecast of a surplus of 356.6 billion yen.

Japan’s export performance has been bolstered by the yen’s depreciation, a firm US economy and a September trade agreement with Washington that set a baseline 15 per cent tariff on nearly all goods.

While US-bound exports fell in December, the impact from US tariffs overall has proven milder than expected.

That led the Japanese government to revise its economic growth forecast for the fiscal year through March to 1.1 per cent, up from an earlier 0.7 per cent.

Amid easing concerns over trade frictions, the Bank of Japan raised its policy rate to a 30-year high of 0.75 per cent in December.

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The central bank is expected to signal its readiness for further rate hikes at its two-day policy meeting ending on Friday, as recent yen falls and prospects of solid wage gains keep policymakers alert to containing inflationary pressure. REUTERS