adminTOKYO. — Japanese exports put in their best performance in three years, data showed yesterday, but were not enough to prevent a record August trade deficit hit by soaring energy costs.The monthly deficit of 960,3 billion yen was well up from 768,4 billion yen a year earlier, marking the worst-ever August deficit and extending a string of shortfalls to 14 months — tying the previous record set more than three decades ago.
But the cheaper yen also pushed up Japan’s exports, with the value of shipments rising 14,7 percent, helped by strong demand for vehicles.
That marked the sharpest monthly export rise since August 2010. And with strengthening demand in key markets including the United States, China and Europe, Japan’s trade picture was likely to brighten further, said Credit Agricole economist Yoshiro Sato.
“Although the trade deficit is still large of late, the improvement in export outlook would mean that it would gradually narrow going forward,” he added.
HSBC Japan economist Izumi Devalier added that “while some of the upswing (in exports) was a reaction to July’s sharp fall, the manufacturing sector is on a gradual recovery trend”.
Imports, meanwhile, jumped 16,0 percent last month, with energy costs soaring after the Fukushima atomic crisis forced Japan to switch off its nuclear reactors.
There is little public appetite to turn the country’s atomic power back on although Japan’s conservative government has said a restart was all but certain once safety could be assured.— AFP.
Online Reporter