— Add Details, Economist Comments From 6th Paragraph
— Japan June 1st 20-Day Exports -4.7% Y/Y Vs May +10.0%
— Japan June 1st 20-Day Imports -0.7% Y/Y Vs May +9.3%
— Japan June 1st 20-Day Trade Deficit Y261.8 Bln

TOKYO (MNI) – Japan’s exports fell in the first 20 days of June
from a year earlier, when shipments were recovering from the major
supply chain breakdown caused by the March 2011 earthquake disaster,
data released by the Ministry of Finance showed on Friday.

Exports in the first 20 days of last month came to Y3.43 trillion,
down 4.7% from a year before, when the year-on-year slump in shipments
of cars and electronics was easing from the previous month.

The latest decline followed a 10.0% jump in exports in the whole of
May this year.

Imports dipped 0.7% y/y to Y3.69 trillion in the first 20 days of
June following a 9.3% rise in the previous month.

As a result, Japan’s trade balance for the first 20 days of June
posted a deficit of Y261.78 billion, compared with a deficit of Y119.65
billion in the first 20 days of June 2011.

In the first 20 days of June, the fall in exports was led by
computer parts, electronic parts and devices and power-generating
machinery, which more than offset higher shipments of automobiles and
auto parts.

Meanwhile, the decrease in imports was led by lower imports of
non-ferrous metals products, liquefied petroleum gas (LPG) and audio
visual equipments such as televisions, which more than offset higher
purchases of liquefied natural gas (LNG) and crude oil, according to the
MOF.

Taro Saito, senior economist at NLI Research Institute,
acknowledged export weakness in the first 20 days of June, and said this
may be caused by the U.S. economy, which has lost steam recently.

He forecast the June trade balance, due on July 25, to show a
deficit of nearly Y100 billion, smaller than a deficit of Y910.4 billion
in May.

Saito said the trade deficit will continue to shrink moderately as
the growth in imports decelerates thanks to declines in imported crude
oil prices, but he added that Japan is unlikely to have a surplus until
January-March 2013.

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

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