JEQ - Japan's November trade deficit narrows amid dip in exports dented by weak demand from China
2023-12-20 01:18:33 ET
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Japan's trade deficit decreased sharply to JPY 776.94 billion in November 2023 from JPY 2,057,64 billion in the same month of the prior year, compared with market estimates of a shortfall of JPY 962.4 billion.
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Exports from Japan unexpectedly fell 0.2% y/y to JPY 8,819.59 billion in November 2023, declining for the first time since August and missing market forecasts of a 1.5% rise, dented by weak demand from China.
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Imports to Japan shrank 11.9% y/y to JPY 9,596,53 billion in November 2023, compared with market consensus of an 8.6% drop and after a 12.5% plunge in October. This was the 8th month of fall, amid lower energy cost.
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"A stronger yen and falling commodity prices will help bring down the value of imports but we need to be careful about weak exports. Lower energy prices are also a reflection of weaker demand," said Kota Suzuki, an economist at Daiwa Securities.
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"Growth in U.S.-bound exports appears set to slow, coming on top of weak export numbers for China. I don't expect the deficit to shrink substantially," he added.
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Japan's November trade deficit narrows amid dip in exports dented by weak demand from China