— Japan July Exports +23.5% Y/Y, Up 8 Months In Row
— Japan July Imports +15.7% Y/Y, Up 7 Months In Row
— Japan July Exports To US +25.9% Y/Y, Up 7 Months In Row
— Japan July Exports To EU +13.3% Y/Y, Up 8 Months In Row
— Japan July Exports To Asia +23.8% Y/Y, Up 9 Months In Row
— Japan July Exports To China +22.7% Y/Y, Up 9 Months In Row

TOKYO (MNI) – Japan’s trade surplus more than doubled from a year
earlier, up 119.9% at Y804.20 billion in July, the 14th consecutive
month that the surplus has exceeded the year-ago level, but the pace of
export growth y/y decelerated for the fifth month in a row, Ministry of
Finance data released on Wednesday showed.

Japan has posted a trade surplus for 16 months in a row, with the
country’s last deficit, of Y5.41 billion, recorded in March 2009.

July’s surplus followed a downwardly revised surplus of Y686.42
billion in June (preliminary +Y686.96 billion). In July 2009, Japan
posted a trade surplus of Y365.67 billion.

The July 2010 figure came in well above the consensus call for a
surplus of Y469.9 billion.

The latest data showed that Japanese exports rose 23.5% in July
from a year earlier to Y5.98 trillion, the eighth straight year-on-year
gain.

However, the pace of export growth decelerated for the fifth month
in a row after +27.7% in June, having peaked at +45.3% in February.

Today’s data indicated that Japan’s export-driven economic recovery
may be moderating in the wake of a slowdown in Europe, the U.S. and
China.

In July, shipments of automobiles, iron and steel products as well
as semiconductors posted double-digit percentage growth from a year
earlier but at a slower y/y pace than in the previous month.

Last year, demand for Japanese cars and electronics had recovered
gradually in the aftermath of the global financial crisis and recession.

Meanwhile, imports rose 15.7% on the year to Y5.18 trillion in
July, posting the seventh consecutive y/y rise but slowing from +26.1%
in June.

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

Exports to the United States rose 25.9% from a year earlier to
Y972.2 billion, up for the seventh consecutive month. While the export
growth pace was above June’s 21.1% rate, it has generally trended down
from +50.5% in February.

Automobiles, power-generating machines and auto parts led the
increase in U.S. exports.

Shipments to the European Union rose 13.3% to Y632.6 billion in
July, posting the eighth straight year-on-year gain. The pace of growth
accelerated from +9.0% in June, which was the slowest since +1.4% in
December 2009.

Construction machinery, computer parts and auto parts led the
increase in exports to Europe.

Japan’s exports to Asia rose 23.8% to Y3.34 trillion in July,
marking the ninth consecutive month of y/y gains, with the pace slowing
for the sixth month from a revised +31.6% in June and a recent peak of
68.3% in January.

As seen in the previous month, 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
22.7% to Y1.16 trillion in July, showing the ninth consecutive y/y rise.

Chinese export growth was only slightly higher than in the previous
month (+22.0% y/y), when its pace slowed for the fifth month in a row
since hitting a recent peak of +80.0% in January.

Shipments of metalworking machinery, automobiles and semiconductors
led the gain.

On a seasonally adjusted basis, Japan’s trade surplus posted a
surplus of Y610.42 billion in July, up 18.6% from the previous month.

Seasonally adjusted exports posted the third straight
month-on-month drop, down 1.4% in July, while imports fell 3.5%, the
showing the second straight m/m fall.

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 from October 2008 until January 2009.

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

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