Japan trade balance for August Y -635.4bn , much larger deficit than expected

  • expected Y -47.7bn, prior Y 439.4bn

Trade balance adjusted Y -271.8bn

  • prior Y 52.7bn

Exports +26.2% y/y , much lower than expected

  • expected 34.0% y/y, prior 37.0%

  • +0.8% m/m

Imports +44.7% y/y , higher than expected

  • expected 40.0% y/y, prior 28.5%

  • +4.6% m/m


  • exports to the US +22.8% y/y
  • & to China +12.6% y/y

Some encouragement can be taken from the beat in imports, although not so much from the miss in exports.

Little change for yen.

More (via Reuters report):

  • Exports sixth straight month of double-digit growth as strong demand for chip-making equipment offset slowing U.S. and E.U.-bound shipments of cars
  • "The semiconductor issue had quite a big impact, which weighed on car exports a lot," said Takeshi Minami, chief economist at Norinchukin Research Institute. "I think it's likely to impact exports at least until the year-end as bottlenecks in parts supply in Southeast Asia continue."