The Japanese Finance Ministry said Monday that the world’s third largest economy logged a goods trade surplus of 823.47 billion yen (around 7.48 billion USA dollars) on a customs-cleared basis for the third straight month of black trade balance. Imports fell 23.3 percent, leaving a trade surplus of 823.5 billion yen ($7.5 billion), the highest since March 2010.
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Japan’s exports were still in the red in after Ministry of Finance data released today revealed a drop of 10.1 per cent year on year in April – despite stronger growth figures.
The Markit/Nikkei Flash Japanese manufacturing purchasing managers index (PMI) showed Japanese manufacturing activity contracted at the fastest pace in more than three years in May as new orders slumped.
The Nikkei share average climbed 1.6 per cent to 16,757.35 points, its highest close since April 27.
American crude neared US$48 (RM196.36) a barrel as Canada worked to resume output following devastating wildfires, while nickel halted a four-day slide.
The US dollar remained broadly stronger after being boosted by recent comments from Federal Reserve officials as well as minutes of the Fed’s April meeting have increase odds that a rate hike in June or July is a real possibility.
BEIJING (AP) Major stock markets were mixed Monday after a global finance meeting failed to yield fresh ideas for spurring economic growth and Japanese exports weakened.
A fall in shipments of cars and steel overseas led exports lower, as key producers including auto giant Toyota warned that a rally in the yen was taking a bite out of profits, on the back of a slowdown in China and other emerging economies.
At the same time, the United States has warned Japan against intervening in the currency market, a la China (China recently depreciated its currency to cope with falling exports).
The yen gained 0.4% against the dollar on Monday to trade at 109.76 after falling 0.2% Friday. London’s FTSE 100 retreated 0.3 percent to 6,136.32.
Japanese stocks fell in thin trade on Tuesday morning as the yen’s gains on the dollar overnight and indications Tokyo is reluctant to intervene to weaken the currency soured the mood, taking a toll on exporters and other currency-sensitive shares. The Standard & Poor’s 500 index slipped 4 points, or 0.2 percent, to 2,048.
Imports for April were down 23.3 percent on-year.
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ANALYST’S TAKE: Lew’s message to Aso, the second time Washington has warned Tokyo against trying to intervene in currency markets to support trade, “may affect the Japanese central bank’s ambitions to push monetary stimulus further”, Margaret Yang Yan of CMC Markets said in a report.
