— Japan July Trade Deficit Y517.4 Bln; MNI Fcast -Y300.0 Bln
— Japan July Exports -8.1% Y/Y; MNI Median Forecast -3.0%
— Japan July Exports Post 2nd Straight Y/Y Drop
— Japan July Imports +2.1% Y/Y; MNI Median Forecast +3.2%
— Japan July Imports Post 1st Rise in 2 months
— Japan July Exports to Asia -9.0% Y/Y, 2nd Straight Fall
— Japan July Exports To China -11.9% Y/Y, 2nd Straight Fall
— Japan July Exports To US +4.7% Y/Y, 9th Straight Rise
— Japan July Exports To EU -25.1% Y/Y, 10th Straight Fall

TOKYO (MNI) – Japanese exports dropped at a faster-than-expected
pace in July, hit by depressed global demand for semiconductors,
particularly from Europe and China, data from the Ministry of Finance
showed Wednesday.

Japan’s exports to the world tumbled 8.1% from a year earlier to
Y5.31 trillion in July, following a 2.3% fall in June and a 10.0% rise
in May. It marked the seventh y/y drop in the past 12 months.

The headline figure was worse than the median forecast for a 3.0%
fall in a MNI survey of economists.

In July, exports of general machinery slumped 13.5% from a year
earlier while shipments of electrical machinery including semiconductors
fell 9.2%.

Reflecting the global slowdown and continued high natural gas
imports, Japan posted a trade deficit of Y517.4 billion last month,
marking the first deficit in two months and compared with a year earlier
surplus of Y69.7 billion.

The July trade figure came in worse than the median forecast by
economists in a MNI survey for a deficit of Y300.0 billion.

Japanese imports rose 2.1% to Y5.83 trillion for the first rise in
two months, led by purchases of liquefied natural gas for power
generation and smartphones, after making the first fall in 30 months in
June.

But the import figure is also below the median forecast by
economists in a MNI survey for a 3.2% rise.

In July, imported crude oil prices averaged $102.2 a barrel, down
10.0% on year, following a 0.5% rise in June. This led to a 8.8% drop in
crude imports last month.

Exports to Asia, the largest market for Japanese goods, fell 9.0%
to Y2.96 trillion in July, a second straight fall, as exports to China
tumbled 11.9% to Y1.0 trillion last month, also a second straight fall.

Exports to the U.S. rose 4.7% to Y934.2 billion in July for a ninth
straight rise, led by demand for automobiles and construction machinery.

Meanwhile, exports to the European Union fell 25.1% to Y502.3
billion in July for a 10th straight year-on-year fall, hit by lower
shipments of automobiles and semiconductors. It was the largest drop
since -29.0% seen in October 2009.

As a result, Japan’s deficit with the EU hit a record high of Y95.3
billion in July.

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

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