Japan imports leap 8 per cent

TOKYO — Japan’s trade sector started out the year on a strong note though it slipped into deficit for the first time in eight months due to higher oil prices and seasonal factors.

Customs data showed imports rose eight per cent from a year earlier to 7.03 trillion yen ($66 billion US). Exports jumped 12 per cent to 6.09 trillion yen, leaving a deficit of 943.4 billion yen.

Exports to China jumped 30 per cent from a year earlier.

Oil prices have gained over the past year, rising from $55 US per barrel in January 2017 to more than $70 US per barrel for part of last month. As a resource-scarce nation, Japan imports nearly all of its nonrenewable energy needs. Imports of oil, gas and coal jumped nearly 10 per cent in January from a year earlier, to almost 1.6 trillion yen ($15 billion US).

Japan’s trade surplus with the U.S. fell 12 per cent as exports edged higher to 1.07 trillion yen. Surging shipments of liquefied petroleum gas, soybeans and machinery helped push imports up nine per cent to 717 billion yen.

Harumi Taguchi, an economist for HIS Markit, said the timing of new year and lunar new year holidays likely pushed the balance into deficit. But she added that “the overall trend for exports is likely to remain solid thanks to sustained brisk machinery orders from overseas, which will contribute to maintaining Japan’s trade surplus over the near term.”