Japan’s export dropped -4.5% yoy to JPY 6038B in February, much worse than expectation of -0.5% yoy. That’s also the first decline in exports in three months. Exports to China slowed sharply to 3.4% yoy, partly due to lunar new year holidays. Exports to US dropped -14.0% yoy. dragged down by automobiles, airplane parts and motors.
Imports rose 11.8% yoy to JPY 5821B, slightly below expectation of 11.9% yoy. That’s, nonetheless, the first annual increase in exports in 22 months due to pickup in domestic demand, restocking of inventory and rises in crude oil and resources prices. Trade surplus came in at JPY 217B.
In seasonally adjusted terms, exports dropped -4.7% mom. Imports rose 4.7% mom. Trade balanced turned into JPY -0.04T deficit, smaller than expectation of JPY -0.20T.
