Japan trade balance for December 2020
- Trade balance ¥751 billion vs. ¥930.5 billion estimate
- Trade balance adjusted ¥477.1 billion vs. ¥719.2 billion estimate. Last month revised to ¥549.5 billion vs. ¥570.2 billion previously reported
- Exports year on year rose by 2.0% vs. 2.4% estimate. Last month -4.2%
- Imports year on year -11.6% vs. -13.9% estimate. Last month -1.1%
- Japan's exports post 1st year on year increase since November 2018 (2 years)
- Japan's December exports to Asia +6.1% year on year
- Japan's exports to China +10.2% year on year
- Japan's exports to US -0.7% year on year
The improved trade picture is positive for the Japanese economy. However the spread of the coronavirus continues to weigh on the risks going forward. Last week Japan's Prime Minister Suga widened a state of emergency to 60% of the economy. The damage to the service sector, increases the need for export and manufacturing to lift the economy. The good news is demand from China (exports +10.2%) is positive.
The USDJPY is little changed after the report (trading at 103.545).
