Japan May trade deficit jumps on soaring energy costs

Japan logged a bigger-than-expected trade deficit of 520.3 billion yen ($6.5 billion) in April as higher energy costs pushed up imports, the finance ministry said Wednesday.The deficit was larger than a shortfall of 477.7 billion yen registered in April 2011, a month after Japan was hit by a huge earthquake and tsunami which battered the world's third-largest economy.It was also bigger than the 470 billion yen deficit expected by economists.

At some point, I suggest now, Japan needs to stop blaming the earthquake and tsunami for its collapse in exports. Furthermore, Japan is going to have difficulty financing its debt unless its turns the situation around quickly.

Japan logged a much larger than expected trade deficit in August as imports soared despite an upturn in exports, according to official data.The deficit reached 775.3 billion yen ($10 billion), the biggest-ever red-ink figure for the month, according to the finance ministry.It reversed the year-before surplus of 63.8 billion yen and was much bigger than deficits of less than 300 billion yen projected by economists.

The global economy took another turn for the worse as Japan plunged into recession following two consecutive quarters of growth. Please consider Japan’s economy shrinks annualized 3.5%. Japan’s economy shrank an annualised 3.5 per cent between July and September, the steepest decline since the earthquake-hit first quarter of 2011, as exporters suffered big falls in shipments to key markets such as China and Europe.

After a couple of headfakes higher on the daily charts Yen Set for 11th Weekly Drop. The yen headed for a record stretch of weekly losses against the dollar as data showing a decline in Japanese consumer prices added to the case for further monetary stimulus from the central bank.

After a couple of headfakes higher on the daily charts Yen Set for 11th Weekly Drop. The yen headed for a record stretch of weekly losses against the dollar as data showing a decline in Japanese consumer prices added to the case for further monetary stimulus from the central bank.

The value of the yen has fallen sharply since Prime Minister Shinzo Abe took office in December on a promise to defeat deflation, while the Bank of Japan’s decision this month to ramp up its asset-buying program has fueled its decline.   In theory, the yen’s depreciation should be positive for Japan’s trade balance.   A weaker currency generally boosts demand for a country’s exports as they become cheaper in international markets, while dampening domestic consumption of imports as their prices increase in local currency terms.  

The value of the yen has fallen sharply since Prime Minister Shinzo Abe took office in December on a promise to defeat deflation, while the Bank of Japan’s decision this month to ramp up its asset-buying program has fueled its decline In theory, the yen’s depreciation should be positive for Japan’s trade balance.