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Japan on Wednesday posted a bigger-than-expected trade deficit inApril, as surging energy costs pushed up imports while shipments toChina -- its biggest market -- fell from a year ago. The monthly deficit of 520.3 billion yen ($6.5 billion), was largerthan the 477.7 billion yen in the same month a year ago and thehighest ever for April. However, despite concerns over the debt crisis gripping Europe andthe impact of the stronger yen on exporters the Bank of Japan heldoff relaxing monetary policy further. Japan has switched off its nuclear reactors following last year'squake-tsunami disaster, which sparked the worst atomic crisis in ageneration and pounded the world's third-largest economy. The policy has forced the resource-poor nation to adopt priceyfossil fuel alternatives, helping to push up April imports, whichrose 8.0 percent to 6.09 trillion yen. Exports also rose in the period, gaining 7.9 percent from a yearearlier to 5.57 trillion yen, thanks to shipments of automobilesand vehicle parts, with US-bound trade jumping from a year earlier. The deficit, the second straight on-year monthly shortfall,outpaced analyst expectations of 470 billion yen, with HidekiMatsumura, senior economist at the Japan Research Institute, sayingweakening exports to China were a concern. "The growth in exports will depend on overseas economies... andexports may continue to weaken," Matsumura told Dow JonesNewswires. "The US economy seems to be recovering somewhat, but China seems tobe slowing." Japan had a 274.2 billion yen trade deficit with its Asianneighbour, which overtook it as the world's second-biggest economyin 2010, as exports fell 7.1 percent, the seventh consecutive monthof year-on-year drops. Concerns over China's slowing growth have intensified after arecent slew of weak economic data, including a report that showedoutput from the country's millions of factories and workshops hit anear three-year low in April. Japan saw a trade surplus of 425.8 billion yen with the UnitedStates, a 165 percent year-on-year increase, but shipments todebt-hit Europe, another key export market, fell 1.9 percent whileimports from the continent fell 4.2 percent. Analysts have warned that high prices for liquefied natural gas andrising imports in Japan, beset by a rapidly ageing population andshrinking manufacturing sector, were likely to generate tradedeficits throughout 2012. The downbeat data came a day after Fitch cut Japan's sovereigncredit rating, and warned of another possible downgrade if Tokyodoes not hasten its bid to shrink a national debt that stands atmore than twice its gross domestic product -- the highest ratioamong industrialised nations. The Bank of Japan later said after a policy setting meeting itwould keep interest rates at zero to 0.1 percent but did notannounce any plans to raise its asset purchase scheme -- the maintool of monetary easing -- from the current 70 trillion yen. "Japan's economy is expected to return to a moderate recovery pathas the pace of recovery in overseas economies picks up... and asreconstruction-related demand after the (March 2011) earthquakedisaster gradually strengthens." However it also warned that "there remains a high degree ofuncertainty about the global economy, including the prospects forthe European debt problem" and the speed of a US economic recovery. But Japanese Finance Minister Jun Azumi said he expects the bank tousher in fresh easing at a later date. "I am expecting that (BoJ) will further ease policy appropriatelyand flexibly at the right time to meet the (government's) 1.0percent" inflation goal, Azumi told a parliamentary session. I am an expert from shineder-lace.com, while we provides the quality product, such as Eyelet Lace , China Beaded Lace Fabric, Brushed Lace,and more.
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