TOKYO (AP) — Japan posted a trade surplus in June, the first in three months, highlighting a recovery in exports, government data showed Thursday.
For the first six months of this year, Japan’s trade deficit declined by more than half from the same period last year, to 3.23 trillion yen ($21 billion), according to Finance Ministry data.
The yen’s weakness against the U.S. dollar has helped boost Japan’s exports in recent months. The trade surplus in June grew five-fold from a year earlier to 224 billion yen, or $1.4 billion, on rising exports of vehicles and computer chips.
The weak yen works as a negative for Japan’s imports, especially amid inflationary trends and rising energy costs. Resource-poor Japan imports almost all its energy.
Japan has logged trade deficits for six straight fiscal half-years, starting with the final half of 2021, mainly because of the weak yen and rising global prices. Japan's fiscal year runs from April to March.
For the month of June, imports rose 3% to 8.98 trillion yen ($58 billion), while exports rose 5% to 9.2 trillion yen ($59 billion).
In the first six months of the year, imports rose 0.8% to 54.7 trillion yen ($350 billion), while exports gained nearly 9% to 51.5 trillion yen ($330 billion).
A report by economists at SMBC Nikko Securities, including Koya Miyamae, projects Japan’s trade deficit will continue to decline. Exports to the U.S. and Asia rose, those to Europe are lagging, they said.
The U.S. dollar has been rising steading this year, hitting 160-yen levels in recent weeks. The dollar was trading at about 156 yen Thursday. Although a weak yen erodes Japan’s purchasing power, it boosts the value of overseas earnings when converted into yen.
___
Yuri Kageyama is on X: https://twitter.com/yurikageyama
Before you consider Sumitomo Mitsui Financial Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Sumitomo Mitsui Financial Group wasn't on the list.
While Sumitomo Mitsui Financial Group currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to generate income with your stock portfolio? Use these ten stocks to generate a safe and reliable source of investment income.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.