— Japan Posts Trade Surplus For 12th Month In A Row
— Japan May Exports +32.1% Y/Y, Up 6 Months In Row
— Japan May Imports +33.4% Y/Y, Up 5 Months In Row
— Japan May Exports To US +17.7% Y/Y, Up 5 Months In Row
— Japan May Exports To EU +17.4% Y/Y, Up 6 Months In Row
— Japan May Exports To Asia +34.4% Y/Y, Up 7 Months In Row
— Japan May Exports To China +25.3% Y/Y, Up 7 Months In Row

TOKYO (MNI) – Japan’s trade surplus stood at Y324.2 billion in May,
above a year earlier and the 12th consecutive monthly surplus, but the
pace of export growth decelerated for the third month in a row, Ministry
of Finance data released on Thursday showed.

May’s surplus followed a downwardly revised surplus of Y740.5
billion in April (preliminary +Y742.3 billion). In May 2009, Japan
posted a trade surplus of Y281.39 billion.

The May 2010 figure came in below the consensus call of a surplus
of Y450.0 billion.

The latest data showed that Japanese exports rose 32.1% in May from
a year earlier to Y5.31 trillion, the sixth straight year-on-year gain.

However, the pace of export growth decelerated for the third month
in a row, having peaked at +45.3% in February. In absolute terms,
exports were down for the second month in a row, having peaked at Y6.00
trillion in March.

It will take several months more data to decide whether the
slowdown in Japanese exports is a temporary phenomenon or reflects a
slowing of global growth and export demand.

In May, shipments of automobiles, semiconductors and iron and steel
products surged from a year earlier, when demand for Japanese cars and
electronics was still depressed amid the global financial crisis and
recession.

Imports rose 33.4% on the year to Y4.99 trillion in May, posting
the fifth consecutive y/y rise. The pace of export growth has
accelerated every month this year, though the level of exports was the
lowest since February.

The value of imports of petroleum, non-ferrous metals and liquefied
natural gas rose sharply.

Exports to the United States rose 17.7% from a year earlier to
Y758.0 billion, up for the fifth consecutive month. But the growth pace
was the slowest this year and the absolute level the lowest since
January.

Automobiles, auto parts, semiconductors and iron and steel products
led the gain in U.S. exports.

Shipments to the European Union rose 17.4% to Y615.8 billion,
posting the sixth straight year-on-year gain. The pace of growth slowed
to the lowest since January and the yen level to the lowest since
February.

Automobiles, auto parts, semiconductors and scientific, optical
instrument led the recovery in exports to Europe.

Meanwhile, Japan’s exports to Asia rose 34.4% to Y3.02 trillion in
May, marking the seventh consecutive month of y/y gains.

But the pace of growth decelerated to the slowest since December,
with the level of exports was the lowest since February.

Higher shipments of semiconductors, iron and steel products as well
as automobiles led Japanese exports to Asia.

Exports to China, the largest market for Japanese goods, expanded
25.3% to Y1.02 trillion in May, showing the seventh consecutive y/y
rise. However, export growth dropped to its slowest pace since November
last year and the level to its lowest since February.

Shipments of automobiles, scientific, optical instrument and iron
and steel products led the gain.

On a seasonally adjusted basis, Japan’s trade surplus posted a
surplus of Y416.05 billion in May, down 18.0% from the previous month.

Seasonally adjusted exports were down 1.2% from the previous month
while imports rose 0.4%.

Japan’s trade balance returned to a surplus of Y90.97 billion
(still -94.3% y/y) in September 2008, but in the wake of the collapse of
U.S. investment bank Lehman Brothers it plunged into negative territory
again, posting deficits of Y75.21 billion in October, Y227.51 billion in
November and Y322.23 billion in December 2008 and Y967.94 billion in
January 2009.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$,MT$$$$]