Japan’s exports fell for a 10th straight month last month amid weak demand in China, South Korea and other Asian markets, the Japanese government said yesterday.
The data showed a deepening impact from trade tensions between the US and China and between Japan and South Korea.
The Japanese Ministry of Finance said that the trade deficit in September totaled US$1.1 billion, a third consecutive month of red ink.
Exports fell 5.2 percent from the same month last year, with slower shipments of machinery and auto parts. Imports dropped 1.5 percent.
Exports to the US dropped nearly 8 percent from a year earlier, while imports from the US declined 12 percent. The trade surplus with the US fell 3.5 percent to ￥564.1 billion (US$5.2 billion).
“The risks that exports will shrink drastically have subsided, but it is expected that time will be needed before exports can recover considerably,” IHS Markit Ltd economist Harumi Taguchi said.
The tariffs between the US and China have taken a toll across the region, hurting manufacturers within extended supply chains, while a dispute between Japan and South Korea over exports of some high-tech goods has added to uncertainty.
South Korea’s exports are poised for an 11th monthly decline as China’s economy slows and tech demand struggles to rebound.
Exports during the first 20 days of this month fell 20 percent from a year earlier, data from the Korea Customs Service showed.
Semiconductor sales, which account for the largest share of exports, declined 29 percent, while overseas shipments of automobiles dropped 6.5 percent, the data showed.
Shipments to China, South Korea’s biggest trading partner, dropped 20 percent, exports to the US slid 17 percent and shipments to Japan fell 21 percent.
“The worst for exports may be over, but a meaningful rebound also appears challenging,” Barclays Bank PLC economist Angela Hsieh (謝涵涵) wrote in a report.
Overall imports fell 20 percent in the first 20 days of this month from a year earlier, the data from the customs office showed.
Additional reporting by Bloomberg
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily