Japan's trade surplus jumped 74 per cent in March from a year earlier to a record high, exceeding market forecasts, as steady demand for Japanese goods in Asia and Europe softened the impact from a slowdown in the US economy.
Exports hit a record high thanks to rising shipments of automobiles and semiconductors, while imports were flat on a downturn in crude oil prices and a decline in imports from China, contributing to the sharp expansion in the surplus.
The customs-cleared trade surplus in March rose to a record 1.63 trillion yen ($13.77 billion), well above economists' median forecast of 1.36 trillion yen, data from the Ministry of Finance showed today.
"Exports are strong despite a slowdown in the US economy, which shows that Japan's economy continues to get solid support from external demand," said Noriaki Haseyama, an economist at Dai-ichi Life Research Institute.
"Judging from the data, external demand is likely to have contributed slightly to overall economic growth in the January-March quarter," he said.
Financial markets reacted little to the data.
Some economists have been wary that a slowdown in the US economy, which is still largely limited to a housing sector correction, could dent US demand for Japanese goods.
Others say spillover from a slower US economy is limited and Japanese exports will remain healthy because of firm demand from Asia and Europe.
Exports, which account for around 15 per cent of Japan's economic activity, grew 10.2 per cent from a year earlier to a record 7.51 trillion yen.