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Japan July Exports Up Y/Y for 8th Month; Trade in Surplus

     TOKYO (MNI) - Trade statistics from the Ministry of Finance released
Thursday.
     * Japanese exports rose 13.4% on year in July, as largely expected (the MNI
median economist forecast was for +13.6%). It was the eighth straight
year-on-year increase after +9.7% in June, reflecting a gradual pickup in global
growth. The increase was led by higher shipments of automobiles, ships and auto
parts.
     * Japanese officials expect a pickup in exports and production to continue
leading a modest recovery in the domestic economy.
     * Imports gained 16.3% on year vs. the MNI median forecast of +17.0%,
marking the seventh straight year-on-year rise after +15.5% in June, led by
increases in purchases of coal, liquefied natural gas, coal and computers.
     * The July trade balance came to a surplus of Y418.8 billion, which was
larger than the MNI median forecast for a Y392.0 billion surplus. It was the
second consecutive black ink after a surplus of Y439.8 billion in June and
compared with a surplus of Y504.5 billion in July 2016.
     * On a seasonally adjusted basis, exports rose 2.8% on month and imports
fell 1.2%.
     * Japan's economy for the April-June quarter posted high growth of 1.0% on
quarter, or an annualized 4.0%, as strong domestic demand -- led by consumption,
business investment and public investment -- offset what is seen as a temporary
slip in external demand, GDP data released Monday showed. But economists
forecast a gradual slowdown in the GDP growth rate toward 1% in Q3 onward as
consumer spending still lacks strength.
     * In Q2 GDP, net exports of goods and services -- exports minus imports --
made a negative 0.3 percentage point contribution to total domestic output.
Exports fell 0.5% on quarter in Q2 for the first drop in four quarters after
+1.9% in the first quarter, while imports rose 1.4% on strong domestic demand,
for the third consecutive rise after +1.3% in Q1.
     * Economists said the slowdown in April-June exports is expected to be
temporary and that telecommunications equipment exports are likely to pick up
toward year-end as demand for iPhone parts increases.
     * In the July trade data, exports to Asia +14.8% on year, the ninth
consecutive y/y rise, led by higher shipments of semiconductors and optical
equipment.
     * Exports to China +17.6%, the ninth straight y/y rise, led by optical
equipment and auto parts.
     * Exports to the U.S. +11.5%, the sixth straight rise, due to higher
shipments of automobiles, chip-making equipment and motors.
     * Exports to the European Union +8.3%, the sixth straight rise, on higher
shipments of auto parts, organic compounds (cosmetics, etc.) and metal working
machinery.
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com
[TOPICS: MAJDS$,M$A$$$,M$J$$$,MT$$$$]

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