— Japan Apr Trade Deficit Y463.67 Bln Vs Surplus Y729.24 Bln Yr Ago
— Japan Apr Trade Balance Posts 1st Deficit Since Jan 2011
— Japan Apr Trade MNI Median Forecast: Y696.1 Bln Deficit
— Japan Apr Exports -12.5% Y/Y, 2nd Y/Y Drop in Row
— Japan Apr Imports +8.9% Y/Y, Up 16 Months in Row
— Japan Apr Exports To US -23.3% Y/Y, 2nd Y/Y Fall in Row
— Japan Apr Exports To EU -10.7% Y/Y, 1st Y/Y Fall in 3 Months
— Japan Apr Exports To Asia -6.6% Y/Y, 2nd Y/Y Fall in Row
— Japan Apr Exports To China -6.8% Y/Y, 1st Y/Y Fall in 18 Months

TOKYO (MNI) – Japan’s trade balance posted a deficit of Y463.67
billion in April as the March earthquake disrupted domestic and
international supply chains for automobiles and electronics, data from
the Ministry of Finance showed on Wednesday.

The red ink was the first since January this year, when Japan
racked up a trade deficit of Y479.41 billion due to slower shipments to
China in late January ahead of the Lunar New Year holidays on Feb 2-8.

The deficit in April marked a reversal from a surplus of Y729.24
billion a year earlier.

Economists have warned of continued downside risks to the trade
sector in the aftermath of the March 11 earthquake and tsunami, as a
full recovery of supply chains is expected to take several more months
and the government has called for a power consumption cut in the summer.

The April deficit came in smaller than the median forecast by
economists in a Market News International survey for a deficit of Y696.1
billion.

Japanese exports dropped 12.5% in April from a year earlier to
Y5.16 trillion, after falling a revised 2.3% in March, which was the
first year-on-year drop in 16 months.

The April drop was led by lower shipments of automobiles,
semiconductors and mineral fuels, compared to year-earlier levels.

Auto exports slumped 67.3% y/y in April, following a -27.8% in
March.

Imports gained 8.9% in April to Y5.62 trillion, posting the 16th
consecutive y/y rise after rising 11.9% in March.

It was led by higher imports of refined petroleum products, crude
oil and liquefied natural gas as commodities prices remained on an
uptrend and Japanese power companies increased thermal power generation
to make up for the declined supply from quake-hit nuclear power plants.

The average imported crude oil price rose 40% in April from a year
earlier to $111.9 a barrel, MOF data showed.

Exports to Asia fell 6.6% to Y3.10 trillion in April after logging
the first year-on-year fall in 17 months in March.

Export to China slid 6.8 % in April, the first y/y decline in 18
months following rises of 3.8% in March and 29.1% in February.

Exports to the U.S. plunged 23.3% from a year earlier to Y670.91
billion in April after posting a revised fall of 3.5% in March, which
was the first y/y drop in 15 months.

April automobile exports to the U.S. market marked the lowest level
in both volume and value, a MOF official told reporters.

In addition, exports to the European Union slumped 10.7% to Y594.57
billion in April, posting the first fall in three months, following a
revised rise of 4.2% March and a gain of 12.7% in February.

Japanese manufacturers are trying to restore their battered
production facilities and supply chains.

Toyota Motor Corp, the world’s largest automaker, said this month
it will start normalizing its production in stages, starting in June, on
a global basis, moving up its normalization plan originally slated for
July in Japan and in August overseas.

Renesas Electronics Corp, which makes automotive-use
micro-controller, plans to gradually restore the chipmaking capacity
that it lost following the March earthquake, the Nikkei reported
recently. Its Naka factory in Hitachinaka, Ibaraki Prefecture fabricates
microcontrollers and system chips, many of which are produced only at
that site.

Renesas will boost its capacity to the mid-30% level in July, then
mid-50% in August and mid-70% in September until it reaches 100% in
October, according to the report.

The government has said the massive damage inflicted on Japan’s
northeastern Pacific coast is estimated at up to Y25 trillion ($309
billion), making it the costliest natural disaster in the country’s
post-war history.

The estimated damage would exceed the toll of around Y9.6 trillion
from the Great Hanshin Earthquake, which hit the western Japanese port
city of Kobe on Jan. 17, 1995.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

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