— Japan May Trade Deficit Y907.3 Bln; MNI Fcast -Y569.0 Bln
— Japan May Exports +10.0% Y/Y; MNI Median Forecast +9.3%
— Japan May Exports Post 3rd Straight Y/Y Rise
— Japan May Imports +9.3% Y/Y; MNI Median Forecast +3.0%
— Japan May Imports Post 29th Y/Y Rise In Row
— Japan May Exports to Asia +4.5% Y/Y, 1st Rise in 2 Months
— Japan May Exports To China +3.0% Y/Y, 1st Rise in 8 Months
— Japan May Exports To US +38.2% Y/Y, 7th Rise In Row
— Japan May Exports To EU -0.9% Y/Y, 8th Drop In Row

TOKYO (MNI) – Japan’s global shipments gained traction in May, led
by a recovery from the 2011 earthquake disaster, but exporters face
slower demand amid uncertainties about growth prospects for China and
Europe, data from the Ministry of Finance showed Wednesday.

Japanese exports rose 10.0% to Y5.23 trillion in May from a year
earlier, posting the third straight y/y rise following rises of 7.9% in
April and 5.9% in March.

The headline figure also beat the median forecast for a 9.3% rise
in a MNI survey of economists. It was the highest growth since +12.9% in
December 2010.

Economists had expected a sharper rise in global shipments last
month in a rebound from the 10.3% slump in exports in May 2011, when
carmakers and electronics firms suffered a major supply chain breakdown
caused by the disaster.

In May this year, automobile exports surged 87.4% from a year
earlier, and among electronic devices, shipments of semiconductor
testers gained 27.6%.

Despite the sharp rise in exports, Japan posted a trade deficit of
Y907.2 billion last month, compared with a year earlier shortfall of
860.7 billion, hit by continued high costs of energy imports.

The May trade figure came in worse than the median forecast by
economists in a MNI survey for a deficit of Y569.0 Billion.

Japanese imports rose 9.3% y/y to Y6.14 trillion for the 29th
consecutive rise on continued high demand for crude oil and liquefied
natural gas used for thermal power generation, which is making up for
the total shutdown of 50 nuclear power plants in Japan.

The pace of increase was way above the median forecast by
economists in a MNI survey for a 3.0% rise.

In May, imported crude oil prices averaged $124.5 a barrel, up 5.0%
on year. The pace of growth decelerated from rises of 13.5% in April,
17.7% in March and 21.2% in February.

Exports to Asia, the largest market for Japanese goods, rose 4.5%
to Y2.88 trillion in May, the first rise in two months, as exports to
China gained 3.0% to Y966.2 billion last month, the first rise in eight
months.

Even though exports rebounded from depressed year-earlier levels,
the value of shipments to both Asia and China was low in May, compared
to their performances in recent months.

This month, China’s central bank lowered benchmark lending and
deposit rates for the first time since the global financial crisis in
the most aggressive move yet to shore up growth in the face of rapidly
slowing economic activity.

Exports to the U.S. surged 38.2% to Y891.4 billion in May for a
seventh straight y/y rise on the back of a rebound in shipments of
automobiles.

Meanwhile, exports to the European Union fell 0.9% to Y556.4
billion in May for an eighth straight year-on-year fall.

In light of the European debt crisis, Japan posted the first trade
deficit with the EU in May, worth Y11.1 billion.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4835 **

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