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Japanese trade deficit soars to record, shares slump

  • Japan's trade deficit more than doubled to a record ¥2.79T ($27.3B) in January from ¥1.3T in December and exceeded consensus of ¥2.49T.
  • Export growth slowed to 9.5% on year from 15.3% and sharply missed expectations of 12.6%.
  • Imports, though, soared 25% vs 24.7% and 21.8%, driven up by the weak yen and significant energy needs because of the closure of the nuclear-power industry.
  • The large trade deficit contributed to GDP expanding at a lower-than-expected 1% in Q4.
  • "If the economy weakens further after a sales tax hike (in April), policymakers could resort to fiscal stimulus as early as summer," says economist Yasuo Yamamoto.
  • However, the trade figures may have been affected by a rush to purchase foreign-made goods before the tax increase and by the Chinese New Year.
  • The Nikkei is -2.15% while the USD-JPY is -0.5% at ¥101.80. (PR)
  • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JPNL, JGBL, JPP, JGBT, JPNS, HEWJ, FJP, JGBB
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Comments (4)
  • King Rat
    , contributor
    Comments (855) | Send Message
     
    2 years ago they blamed trade deficits on a strong yen.
    Today they blame trade deficits on a weak yen.
    Abenomics in a nutshell.
    20 Feb 2014, 03:23 AM Reply Like
  • King Rat
    , contributor
    Comments (855) | Send Message
     
    I apologize, I left something out.
    Raise the sales tax for consumers to pay for stimulus for big government's big buddies in big business. Socialism by any other name. Abenomics: So far to the right they're back on the left.
    20 Feb 2014, 03:26 AM Reply Like
  • GreyNanook
    , contributor
    Comments (9) | Send Message
     
    Shinzō Abe has only been in office for a just over a year.

     

    How does that 2 year old sentiment belong to his administration?
    20 Feb 2014, 05:53 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (9631) | Send Message
     
    The government will radically step up purchases of JGBs. They've got to keep those interest rates low because the interest payments will crush that nation.
    20 Feb 2014, 10:24 PM Reply Like
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