— Japan Posts 18th Straight Trade Surplus at Y797.01 Bln In Sep
— Japan Sep Exports +14.4% Y/Y, Up 10 Months In Row
— Japan Sep Imports +9.9% Y/Y, Up 9 Months In Row
— Japan Sep Exports To US +10.4% Y/Y, Up 9 Months In Row
— Japan Sep Exports To EU +11.2% Y/Y, Up 10 Months In Row
— Japan Sep Exports To Asia +14.3% Y/Y, Up 11 Months In Row
— Japan Sep Exports To China +10.3% Y/Y, Up 11 Months In Row

TOKYO (MNI) – Japan’s trade surplus rebounded by 54.0% in September
from a year earlier to Y797.01 billion, the first year-on-year rise in
two months, after a revised 48.0% slump in August, Ministry of Finance
data released on Monday showed.

However, the pace of export growth on a year-on-year basis
decelerated for the seventh month in a row,

Japan has posted a trade surplus for 18 months in a row, with the
country’s last deficit, Y5.41 billion, recorded in March 2009.

September’s surplus followed a downwardly revised surplus of Y85.99
billion in August (preliminary +Y103.22 billion), which was down by a
revised 48.0% (preliminary -37.5%) from a year before, the first y/y
drop in 15 months.

The September figure came in higher than the consensus call for a
surplus of Y706.8billion.

The latest data showed that Japanese exports rose 14.4% in
September from a year earlier to Y5.84 trillion, the 10th straight
year-on-year gain. But the pace of export growth decelerated from a
revised +15.5% in August and +23.5% in July, having peaked at +45.3% in
February.

The pace of year-on-year increase in shipments to the U.S. picked
up in September from August but the y/y growth in exports to the EU
slowed for the first time in three months. Those to Asia, particularly
China, continued to show a marked slowdown.

In September, shipments of automobiles, ships as well as iron and
steel products posted double-digit percentage growth from a year earlier
but the pace of y/y growth in automobile slowed to +12.0% from +18.7% in
August and +27.1% in July and +40.0% in June.

Last year, demand for Japanese cars and electronics recovered
gradually in the aftermath of the global financial crisis and recession.

September imports rose 9.9% on the year to Y5.05 trillion, posting
the ninth consecutive y/y rise but slowing from a revised +17.9% in
August.

The value of imports of liquefied natural gas, iron ore and coal
rose sharply from year-earlier levels but that for petroleum dropped
6.1%, due partly to the yen’s 9.0% appreciation to Y84.66 to the dollar
last month from Y93.01 a year before.

Exports to the United States rose 10.4% from a year earlier to
Y922.21 billion, posting the ninth consecutive y/y rise. The export
growth pace rose from 8.8% in August but it was still slower than +25.9%
in July and a recent peak of +50.5% in February 2010.

Shipments of construction machinery, power-generating machines as
well as iron and steel products led the increase in U.S. exports.

Shipments to the European Union rose 11.2% to Y668.78 billion in
September, posting the 10th straight year-on-year gain. The pace of
growth decelerated from +13.7% in August and +13.3% in July but it was
faster than +9.0% in June.

Ships, auto parts and power-generating machines led the increase
in exports to Europe while exports of automobiles slumped by 18.8% from
a year earlier.

Japan’s exports to Asia rose 14.3% to Y3.21 trillion in September,
marking the 11th consecutive month of y/y gains, with the pace slowing
for the eighth month from +18.0% in August and a recent peak of 68.3% in
January 2010.

Higher shipments of automobiles, iron and steel products,
metalworking machinery led Japanese exports to Asia.

Exports to China, the largest market for Japanese goods, expanded
10.3% to Y1.08 trillion in September, showing the 11th consecutive y/y
rise.

Chinese export growth decelerated from +18.5% in August +22.7% y/y
in July and +22.0% in June, on a general downtrend after hitting a
recent peak of +80.0% in January 201.

Shipments of automobiles, metalworking machinery and electrical
apparatus led the gain while exports of organic chemicals, which are
used widely in industrial and pharmaceutical products, fell 24.5% from a
year earlier.

On a seasonally adjusted basis, Japan’s trade surplus posted a
surplus of Y587.58 billion in September, up 3.0% from the previous
month.

Seasonally adjusted exports posted the fifth straight
month-on-month drop, down 0.1% in September, while imports fell 0.5%,
showing the fourth straight m/m fall.

Japan’s unadjusted trade balance returned to a surplus of Y90.97
billion (still -94.3% y/y) in September 2008, but in the wake of the
collapse of U.S. investment bank Lehman Brothers it plunged into
negative territory again, posting deficits from October 2008 until
January 2009 and again in March 2009.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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