— Updating with further details

TOKYO (MNI) – Japan’s trade balance for the first 20 days of
September posted a surplus of Y175.84 billion, 67.6% smaller than the
surplus of Y542.15 billion recorded a year before, the Ministry of
Finance said Tuesday.

The trade balance in the first 20 days of September turned positive
after a deficit of Y522.54 billion seen in the first 20 days of August.

But exports in the first 20 days of last month rose only 1.0% to
Y3.76 trillion after rising 8.6% in the first 20 days of the previous
month. For the whole of August, exports gained 2.8%.

Automobiles, auto parts and metal processing machinery contributed
to a y/y rise in the September exports, while exports of semiconductors
and ships declined, according to the MOF.

Imports rose 12.7% y/y to Y3.59 trillion in the first 20 days of
September, with the pace of increase decelerating from +15.2% in the
first 20 days of August and +19.2% in the whole of August.

Liquefied natural gas, crude oil and oil products pushed up the
September imports, MOF said.

Commodity prices are higher than their year-earlier levels.
Moreover, Japan has been forced to depend more on LNG to generate power
since the March disaster knocked out the Fukushima Daiichi nuclear power
plant, the key source of electricity supply to Tokyo and its
neighbouring cities.

During the first 20 days of September, prices of imported crude oil
averaged $110.6 a barrel, up 45.5% from the whole month of September
2010, but down from $114.6 marked in the whole month of August, the MOF
said.

Based on today’s data, Akiyoshi Takumori, chief economist at
Sumitomo Mitusi Asset Management, forecast trade balance for the whole
of September, due out on Oct. 24, would stand at around Y250 billion,
down 67.7% on year, saying, “Y/y declines in trade surplus will likely
continue in the coming several months.”

In August, Japan’s customs-cleared trade balance showed a deficit
of Y777.24 billion, compared with a small surplus of Y63.75 billion a
year earlier.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

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