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| Japan trade deficit swells as weak yen hits import bill | Japan trade deficit swells as weak yen hits import bill |
| (35 minutes later) | |
| Japan's recent monetary policy stance, that has weakened its currency sharply, is starting to have an impact on its trade, latest figures show. | Japan's recent monetary policy stance, that has weakened its currency sharply, is starting to have an impact on its trade, latest figures show. |
| Exports rose in January, the first jump in eight months, as its goods became more affordable to foreign buyers. | Exports rose in January, the first jump in eight months, as its goods became more affordable to foreign buyers. |
| However, a weak currency also pushed up its import bill resulting in a record monthly trade deficit of 1.6tn yen ($17.1bn; £11.1bn) in January. | However, a weak currency also pushed up its import bill resulting in a record monthly trade deficit of 1.6tn yen ($17.1bn; £11.1bn) in January. |
| Japan's deficit has also been impacted by an increase in fuel imports. | Japan's deficit has also been impacted by an increase in fuel imports. |
| The world's third-largest economy has seen a rise in fuel imports, as most of Japan's nuclear reactors continue to remain closed. | The world's third-largest economy has seen a rise in fuel imports, as most of Japan's nuclear reactors continue to remain closed. |
| Japan's imports rose 7.3% in January, from a year earlier. One of the biggest jumps was in the import of liquefied petroleum gas (LPG), which surged more than 28%. | Japan's imports rose 7.3% in January, from a year earlier. One of the biggest jumps was in the import of liquefied petroleum gas (LPG), which surged more than 28%. |
| Meanwhile, exports rose 6.4%, driven up mainly by shipments of manufactured goods, the customs and tariff bureau said. | Meanwhile, exports rose 6.4%, driven up mainly by shipments of manufactured goods, the customs and tariff bureau said. |
| Exports boost? | |
| Japan's exports, one of the key drivers of its economic growth, have been hurt by a variety of factors. | |
| Demand from the eurozone, of Japan's biggest markets, has been hurt by the region's ongoing debt crisis. | |
| A territorial dispute with China has hit sales of Japanese goods to the country, Japan's biggest trading partner, over the past few months. | |
| However, the latest data indicated that things may be starting to change. | |
| Japan's shipments to China rose by 3% in January from a year earlier, the first rise since May. | |
| At the same time, exports to the US, the world's biggest economy, also jumped 10.9%, further adding to hopes of a recovery in the sector. | |
| Meanwhile, the pace of decline in exports to the European Union also slowed during the month. | |
| There are hopes that as shipments to key markets recover and the yen continues to remain weak, Japan's export sector may see a sustained recovery. | |
| The yen has dipped nearly 15% against the US dollar since November. | |
| A weak currency helps boost profits of exporters when they repatriate their foreign earnings back home, giving them a much bigger pile of cash to invest at the end of the financial year. |