Japan's exports fall for sixth consecutive month
Christian Fernsby ▼ | June 19, 2019
Japan's exports tumbled for the sixth straight month in May, hit by a sharp drop in shipments of chip-making tools and automobile parts, amid heightened trade tensions between the U.S. and China.Article continues below
Japan's exports fell by 7.8% from the previous year in May in line with a FactSet poll of economists due to decline in shipments of chip-making tools and semiconductor parts to China, data released by the Ministry of Finance showed.
The weak exports, along with a surge in crude oil imports, translated to a 967 billion yen ($8.9 billion) monthly trade deficit, its first in four months.
Rising global economic uncertainty, and the broad slowdown in the global economy is hurting exporters of precision equipment, like Japan, which is home to the likes of Tokyo Electron Ltd., Dainippon Screen Manufacturing Co., Advantest Corp.and other major makers of machines.
Wednesday's trade data showed exports to China, Japan's biggest trading partner, fell almost 10% year-over-year. Shipments of chip-making equipment fell almost 28%, amid escalating pressure by the U.S. on its allies to restrict use of China-made chips.
Exports to all of Asia fell 12%, as a global slump in chip demand hurt appetites of chip makers like South Korea's Samsung Electronics to invest in capacity expansion. Exports to Europe also fell by 7% on lower appetite for Japanese goods.
However, exports to the U.S. rose 3% on strong demand for Japanese cars, expanding Japan's trade surplus with the U.S. by almost 15% in May from the previous year. The data comes amid continued pressure from Washington on Japan for a bilateral trade deal. ■ What to read next
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