Japan August trade surplus down, oil imports surge

September 19, 2000 8:50pm Source: Reuters

TOKYO, Sept 20 (Reuters) - Japan's trade surplus fell in August as increasingly dear crude oil and an appetite for information technology products pushed up imports, the Ministry of Finance said on Wednesday.

The customs-cleared surplus declined 11.8 percent from a year earlier to 614.8 trillion yen ($5.73 trillion).

Exports rose 12.5 percent to 4.205 trillion yen, the 10th rise in a row, but imports climbed 18.1 percent, also a 10th straight increase, to 3.590 trillion yen.

The surging price of crude oil on world markets was the biggest factor in the import rise. The volume of oil imports actually dipped 3.4 percent, but in value terms they jumped 41.8 percent to 433.0 billion yen, the ministry said.

In a more favourable sign for Japan's fledgling recovery, though, imports of semiconductors and office equipment also climbed briskly.

``On imports, crude oil was the biggest factor, but outside of that, the rise in semiconductors and machinery reflected developments in Japanese domestic demand,'' a ministry official said.

In particular, imports from the rest of Asia -- led by semiconductors and office equipment -- rose 24.9 percent to a record 1.500 trillion yen.

But soaring demand in recovering Asian economies pushed up the surplus with the region by 49.0 percent, the ministry said.

The official reiterated the government's longstanding position that Japan's surplus is unlikely to expand greatly.

Exports were also paced by semiconductors, as well as optical equipment and car parts.

Japan's surplus with its largest trading partner, the United States, edged up 2.3 percent in August from a year earlier to 545.5 billion yen, with both imports and exports up modestly. ^ REUTERS@

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-- Martin Thompson (mthom1927@aol.com), September 20, 2000