Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

Japan trade gap widens as imports surge, capex seen solid

08/16/2022 | 08:31pm EDT
Shipping containers are seen at a port in Tokyo, Japan

TOKYO (Reuters) - Japan's exports jumped to a record amount in July, boosted by global fuel inflation and a weak yen, outweighing exports and deepening trade deficits, in a sign of a further worsening in the terms of trade for the export-oriented economy.

The trade data came on the heels of Reuters Tankan, which showed improvement in Japan's business sentiment in August, while the key gauge of corporate capital spending rebounded in June from the previous month's decline.

The batch of data may help ease calls for more stimulus to back the fragile nature of Japan's recovery after the world's third-largest economy logged three straight quarters of expansion to June, led by capital spending and consumption.

The Ministry of Finance data showed on Wednesday exports grew 19.0% in July from a year earlier, posting 17 straight month of gains led by U.S.-bound shipments of cars and China-bounds chip-related goods, beating economists' expectations for a 18.2% gain.

Imports rose 47.2% in July year-on-year to a record 10.2 trillion yen, driven by costs of crude oil, coal and liquid natural gas, versus a 45.7% rise expected, overwhelming exports and bringing trade deficit to 1.4368 trillion yen ($10.69 billion) in July.

The yen's fall by 23.1% from a year earlier added to higher import costs, the data showed.

Separate data showed Japan's key gauge of capital spending rose 0.9% in June from the previous month, versus a 1.3% gain expected by economists in a Reuters poll.

Compared with a year earlier, core machinery orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, grew 6.5%, it showed.

Reflecting corporate resilience, the Reuters Tankan sentiment index for manufacturers rose 4 points to 13 in August and is seen up further to 15 over next three months.

The service-sector index rose to 19 from 14 in July and was seen steady in November helped in part by the lifting of coronavirus curbs among industries such as tourism and eateries.

($1 = 134.3800 yen)

(Reporting by Tetsushi Kajimoto; Editing by Sam Holmes)

By Tetsushi Kajimoto and Kantaro Komiya


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -1.88% 85.05 Delayed Quote.15.96%
S&P GSCI CRUDE OIL INDEX -1.16% 426.7235 Real-time Quote.4.69%
S&P GSCI NATURAL GAS INDEX -2.45% 319.4588 Real-time Quote.87.45%
WTI -1.92% 77.794 Delayed Quote.5.25%
Latest news "Economy & Forex"
08:11aIndia's Congress party likely to get first non-Gandhi chief in 25 years
RE
08:08aNomura expects sterling to hit parity by end-November, $0.975 by year-end
RE
08:07aAnalysis-Australia - a land of promise and hurdles for offshore wind developers
RE
08:07aOrthodox Church leader says Russian soldiers dying in Ukraine will be cleansed of sin
RE
07:59aPound plunge underscores stresses across markets
RE
07:56aUK PM'S SPOKESMAN : no comment on markets, sticking to fiscal plan
RE
07:53aUK's Labour promises a responsible fiscal policy if in government
RE
07:51aU.N. food agency says debris from drone strike hit truck in northern Ethiopia
RE
07:51aHEDGE FUNDS DUMP DISTILLATES AS RECESSION RISKS INTENSIFY : Kemp
RE
07:51aU.N. food agency says debris from drone strike hit truck in northern Ethiopia
RE
Latest news "Economy & Forex"