Tokyo, June 23: Japan's trade surplus with the rest of Asia, including India, in May rose for the fourth straight month but export growth was the smallest in 14 months partly due to the impact of SARS, official data showed today. Japan's trade surplus with Asia increased 23.6 per cent from a year earlier to 387.0 billion Yen (3.3 billion dollars), the finance ministry said.
The trade surplus with India was 147 million yen versus of a deficit of 5.29 billion Yen, it said.
Exports to the Asian region inched up 6.7 per cent to 1.97 trillion Yen, the smallest growth since a 0.2 per cent gain in March 2002. Imports in May grew 3.2 per cent to 1.58 trillion Yen.
"The concern about the SARS (Severe Acute Respiratory Syndrome) impact on Asia is still there because shipments to Asia are not doing so well," said Ryo Hino, economist at JP Morgan in Tokyo.
Japan's trade surplus with the ten countries of the Association of Southeast Asian Nations (Asean) plunged 68.8 per cent to 10.3 billion Yen. "The economy in Southeast Asia is getting worse, so naturally exports from Japan will see some decline," said Hisashi Yamada, economist at Japan Research Institute.
A finance ministry official said exports to Asia have now increased for 15 consecutive months, led by brisk demand for auto parts, which were up 38.3 per cent in May.
"Imports from Asia rose 3.2 per cent, led by a 70.1 per cent increase in oil products," the official said.
Japan's overall trade surplus for the month rose 12.5 per cent to 694.37 billion Yen. Bureau Report