Japan Trade Data On Tap For Monday

Exports rose 14.9 percent from a year earlier (estimate +16 percent), according to data released by the Ministry of Finance.

The 14.9 per cent annual increase in exports in May was the biggest rise since January 2015 and almost twice the pace seen in April, though it was below analysts' expectations of 16.1 per cent.

Exports from Japan were also impacted in May due to the Golden Week string of national holidays.

The growth in exports is partly thanks to a rebound after powerful twin quakes in southwestern Japan past year disrupted production and supply chains.

Japan logged a surplus with the United States rose 19.0 percent to ¥411 billion as exports climbed 11.6 percent.

A large trade surplus could draw criticism from the Trump administration, which has repeatedly indicated that it prefers protectionist policies to reduce the USA trade deficit and increase exports. Since the start of the year, Japan's trade has been witnessing a sustained pickup, with five consecutive months of growth in both exports and imports.

Bigger shipments of flat panels and semiconductor manufacturing equipment from Japan led to the increase in China-bound shipments. Exports of autos and steel were among the largest gainers.

Chinese shares .CSI300 advanced 0.55 percent after data showed home prices rose 10.4 percent in May from a year ago, although slowing from April's 10.7 percent gain. The trade surplus is pegged at 43.3 billion yen, down from 481.7 billion yen a month earlier.

"There are some gains in durable goods, which are related to consumer spending, but rising factory output is the bigger factor behind imports".

The greenback fared better against the Japanese yen JPY=D4, which remained weak after the Bank of Japan left its ultra-loose monetary policy unchanged last week.

  • Leroy Wright