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MW: Japan November trade surplus beats expectations
 
By MarketWatch
TOKYO (MarketWatch) -- Japan posted a wider-than-expected trade surplus in November, according to government data released Monday, while exports to China rose for the first time in over a year.

The surplus came to 373.9 billion yen ($4.14 billion), Ministry of Finance data showed Monday, greater than the 319.2 billion yen consensus forecast of economists polled by Nikkei and Dow Jones Newswires.

Japan's total exports fell 6.2% from the year-earlier period, down for the 14th straight month, but better than October's 23.2% year-on-year drop. Imports fell by an even wider 16.8% from November 2008. The trade figures are measured on a customs-cleared basis.

But exports to China were up 7.8% in November, the data showed.

"Amid ongoing sluggish domestic demand, exports remain key for sustaining recovery from the severe Japanese recession, and raises the stakes surrounding the potential drag from recent [Japanese yen] appreciation," wrote analysts at Action Economics.

In recent weeks, the yen has traded near 14-year highs against the U.S. dollar, but has fallen back as the greenback has strengthened against most rivals. A stronger currency can hurt exports by making goods more expensive and less desirable in overseas markets.

Exports to Asia rose 4.7% in November, while those to the European Union were down 15.9%, and U.S.-bound shipments slipped 7.9%.

Source