Kuwait’s trade surplus with Japan down 18.3% in August
TOKYO: Kuwait’s trade surplus with Japan plunged 18.3 percent from a year earlier to JPY 59.7 billion (USD 552 million) in August, down for the third consecutive month due to continued sluggish export performance, government data showed yesterday. But Kuwait stayed in black ink with Japan for 11 years and seven months, as exports still outpaced its imports by a big margin, according to a preliminary report by the Finance Ministry.
Kuwaiti overall exports to Japan fell 18.2 percent year-on-year to JPY 70.2 billion (USD 649 million) for the third monthly decline. Imports from Japan also slid 18.2 percent to JPY 10.5 billion (USD 97 million), down for the sixth month in a row. Middle East’s trade surplus with Japan shrank 36.3 percent to JPY 543.1 billion (USD 5.0 billion) last month, with Japan-bound exports from the region decreasing 29.8 percent from a year earlier. Crude oil, refined products, liquefied natural gas (LNG) and other natural resources, which accounted for 95.1 percent of the region’s total exports to Japan, fell 30.9 percent. The region’s overall imports from Japan edged up 0.7 percent on strong demand for automobiles and steel.
The world’s third-biggest economy posted a global trade deficit of JPY 136.3 billion (USD 1.26 billion) in August for the second straight month of red ink due to weak exports amid US-China trade tensions. Exports declined 8.2 percent from the year before on weak demand for semiconductor manufacturing equipment to China and vehicles to the US. Imports slid 12.0 percent on lower crude oil and LNG prices. China remained Japan’s biggest trade partner, followed by the US. The trade data are measured on a customs-cleared basis before adjustment for seasonal factors. Elsewhere, Boursa’s Kuwait main indices dropped down yesterday, affected by the current tension in the region following the attack on two oil facilities in Saudi Arabia. The all share index went down 3.3 percent to reach 5,419.9 points.
Oil makes huge leap
For the second consecutive day, the price of Kuwait oil made another huge leap by USD 3.34 to reach USD 68.47 per barrel Tuesday, after being at USD 65.13 pb last Monday, said the Kuwait Petroleum Corporation (KPC). As for the Brent crude price, a decline was recorded of up to USD 4.47 to USD 64.55 per barrel, the same with the West Texas Intermediate, with a decline of USD 3.56 reaching USD 59.34.The instability and current hike in prices is attributed to the recent attack on oil facilities in Saudi Arabia, which led to a decrease in Saudi production.
In other news, the exchange rates of the US Dollar was stable yesterday, exchanging at KD 0.303, also the case with the Euro exchanging at KD 0.336, said the Central Bank of Kuwait (CBK). CBK bulletin added, the British Pound Sterling up to 0.379, but declined with the Swiss Franc at KD 0.305. The Japanese Yen remained unchanged at KD 0.002. Exchange rate prices from the central bank calculates price average of the currency for the day, and does not reflect on the actual buying and selling prices.