Japan Posts 57.3 Billion Yen Trade Surplus in February

Japan posted a trade surplus of 57.3 billion yen in February, marking a reversal from a 1.15 trillion yen deficit the previous month, according to preliminary data released Wednesday by the Finance Ministry.

Exports rose 4.2 percent year-on-year to 9.57 trillion yen, surpassing market expectations of a 1.6 percent increase. The growth came after a robust 16.8 percent expansion in January, though analysts noted a moderation in momentum. Imports climbed 10.2 percent to 9.51 trillion yen, rebounding from a 2.5 percent contraction in January but falling short of forecasts for an 11.5 percent rise. The narrower import growth contributed to the surprise surplus, which exceeded predictions of a 483.2 billion yen deficit.

The performance reflects a mix of supportive and challenging factors for Japan's export-driven economy. A weakening yen, with the U.S. dollar trading around 159 yen compared to below 150 yen a year earlier, has bolstered the competitiveness of Japanese goods abroad. However, rising import costs pose risks, driven by higher energy prices amid geopolitical tensions. The war against Iran has led to the effective closure of the Strait of Hormuz, a critical route for global...