Japan logs trade surplus in August, exports shrink

TOKYO - Japan posted a trade surplus for the seventh straight month in August, compared to a deficit in the same month the previous year, the finance ministry said Thursday.

The surplus was 185.7 billion yen ($2.04 billion) against a deficit of 314.2 billion yen the year before, suggesting a positive trend for Japan’s export-led economy.

However, the August surplus was half the previous month’s surplus of 377.9 billion yen.

Exports fell 36 percent year-on-year to 4.51 trillion yen, and imports shrank 41.3 percent to 4.3 trillion yen.

Imports continued to fall sharply due to a plunge in crude oil prices, outpacing the decline in exports, the ministry said.

Exports are expected to rise again, as Japan’s traditional export markets recover, analysts said, but the recovery might be dampened by the stronger yen, which makes Japanese products less competitive and decreases overseas earnings.

Japan’s trade surplus with the US fell 26.7 percent to 272.9 billion yen, down for the 24th straight month.

Exports to the world’s largest economy fell for the 24th consecutive month, while imports shrank 38.4 percent to 440.2 billion yen.

Japan’s trade surplus with the rest of Asia decreased 30.2 percent to 695 billion yen, down for the 12th straight month, as Japan posted a trade deficit with China for the second month in a row.

Japan’s trade deficit with China totaled 46.1 billion yen against a trade surplus of 7.1 billion yen a year earlier.

Exports to Asia fell 30.6 percent to 2.58 trillion yen, while imports declined 30.7 percent to 1.88 trillion yen.

In trade with the European Union, Japan’s surplus plunged 86.5 percent to 44.8 billion yen, the second lowest surplus on record, due to a surge in imports of medical products from France.

Trade figures are measured on a customs-cleared basis before adjustment for seasonal factors.