Seeking Alpha

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
Comments (4)
  • 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, 03:23 AM Reply Like
  • 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, 03:26 AM Reply Like
  • 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, 05:53 AM Reply Like
  • 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, 10:24 PM Reply Like
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