Japan records 1st trade surplus in 5 months of $2 billion in November

By Berk Kutay Gokmen

ISTANBUL (AA) – Japan logged its first trade surplus in five months in November, reaching 322.3 billion yen ($2 billion), as exports to the US rose for the first time in eight months, government data showed on Wednesday.

Overall exports increased by 6.1% from a year earlier to 9.71 trillion yen ($62.6 billion), marking the third consecutive monthly rise, driven by semiconductor and electronics parts shipments to Asia, and pharmaceutical exports to the US, the country's Finance Ministry said.

Imports grew 1.3% to 9.39 trillion yen ($60.5 billion), the third straight monthly increase, fueled by engines from the EU and chips from Asia, the ministry’s preliminary report showed, according to Kyodo News.

Exports to the US rose 8.8% to 1.82 trillion yen ($11.7 billion), with auto shipments increasing by 1.5%, marking the first rise since March, before the country raised its industry tax.

"While the negative impact of the (US) tariffs has not been completely wiped out, November's US-bound auto exports offered a somewhat positive sign," said Takafumi Fujita, economist at the Meiji Yasuda Research Institute.

Japan's trade surplus with the US grew 11.3% to 739.8 billion yen ($4.7 billion), marking the first rise in seven months. Imports from the US rose 7.1% to 1.08 trillion yen ($6.9 billion).

In July, Tokyo and Washington agreed to a trade deal to reduce tariffs imposed by US President Donald Trump, with new rates effective from September.