— Japan Mar Trade Deficit Y82.6 Bln; MNI Fcast -Y226.3 Bln
— Japan Mar Exports +5.9% Y/Y Vs MNI Median Forecast -0.1%
— Japan Mar Exports Post 1st Y/Y Rise In 6 Mths
— Japan Mar Imports +10.5% Y/Y Vs MNI Median Forecast +7.5%
— Japan Mar Imports Post 27th Y/Y Rise In Row
— Japan Mar Exports to Asia +0.5% Y/Y, 1st Rise in 6 Mths
— Japan Mar Exports To China -5.9% Y/Y, 6th Drop In Row
— Japan Mar Exports To US +23.9% Y/Y, 5th Rise In Row
— Japan Mar Exports To EU -9.7% Y/Y, 6th Drop In Row
— Japan FY2011 Trade Deficit At Record Y4.4 Trln

TOKYO (MNI) – Japan’s exports posted the first annual rise in six
months in March on brighter North American growth prospects and solid
demand from Southeast Asia amid easing fears of the yen hurting an
export-led recovery, data from the Ministry of Finance showed Thursday.

Global shipments rose 5.9% to Y6.20 trillion in March from a year
earlier, beating the median forecast for a 0.1% dip in a MNI survey of
economists.

Economists now forecast that exports will maintain a modest
recovery trend in coming months thanks to recovery in global demand for
automobiles and electronics.

The yen has depreciated from record highs against the dollar hit
last year, reaching an 11-month low of Y84.18 versus the dollar on March
15.

Japanese manufacturers are also recovering from last year’s supply
chain breakdown in flood-hit Thailand, a key production center in Asia.

Automobile exports rose 44.7% in March, with the pace of
year-on-year growth accelerating from +7.4% in February.

Despite the rebound in exports, Japan posted a small trade deficit
of Y82.6 billion last month, reversing a year earlier surplus of Y170.9
billion, hit by surging imports of crude oil and liquefied natural gas.

The March trade figure came in much better than the median forecast
by economists in a MNI survey for a deficit of Y226.3 billion.

Japanese imports rose 10.5% y/y in March to Y6.29 trillion for the
27th consecutive rise on continued high demand for crude oil and
liquefied natural gas used for power generation. It was above the median
forecast by economists in a MNI survey for a 7.5% rise.

In March, imported crude oil prices averaged $121.4 a barrel, up
17.7% on year. The pace of growth decelerated from rises of 21.2% in
February, 23.5% in January, 32.4% in December, 33.0% in November and
43.5% in October.

Exports to Asia, the largest market for Japanese goods, rose 0.5%
to Y3.39 trillion last month, the first rise in six months.

Exports to China declined 5.9% to Y1.1 trillion last month, the
sixth consecutive y/y drop.

Exports to the U.S. rose surged %23.9 to Y1.0 trillion in March for
a fifth straight y/y rise, led by solid demand for automobiles, auto
parts and generators.

Meanwhile, exports to the European Union fell 9.7% to Y615.3
billion in March for a sixth straight year-on-year fall.

In the whole of fiscal 2011, Japan posted trade deficit of Y4.4
trillion, the biggest on record surpassing the Y3.1 trillion shortfall
recorded in fiscal 1979, a result of the second oil shock.

Exports in fiscal 2011 fell 3.7% to Y65.3 trillion, the first fall
in two years, while imports surged 11.6% to Y69.7 trillion, a second
straight annual rise.

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

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