Evans Chamberlain Asset Management comments to yen rising, Japan exports growing and trade surpluses widening

TAIPEI, Taiwan, Feb. 20, 2018 /PRNewswire/ - Evans Chamberlain Asset Management have recently commented that Japan's exports held up in January 2018 despite the stronger yen while shipments to China, the nation's biggest trading ‎partner, surged reflecting calendar effects and higher domestic demand in the ‎world's No.2 economy.‎

Head research analysts and traders at Evans Chamberlain Asset Management have noted that exports to the United States during the month in yen terms rose 1.2 per cent year on year, ‎while shipments to Asia as a whole, which represent over 50 per cent of Japan's exports, ‎increased 16 per cent, the ministry of finance data on Monday, leaving a trade surplus of 373.3 ‎billion yen, easily surpassing analysts' forecasts of 144 billion yen.‎

Overseas demand has remained strong throughout 2017 thanks to a synchronised global ‎expansion, helping to offset the yen's continued surge. Imports have also shown signs of ‎strength since the fourth quarter as campaigns to generate a self-sustaining economic ‎recovery have intensified, helping shore up domestic activity. ‎

Still, the world's third largest economy faces uncertainty. Trade friction between the Trump ‎administration and Japan has ratcheted up recently, with each county investigating imports ‎from the other after the U.S. authorities slapped tariffs on specific items.‎

The stand off was likely to intensify this year, but a trade war was unlikely, ‎according to Oliver Kovac, Head of Corporate Trading at Evans Chamberlain Asset Management. ‎

‎ "We should focus more on the trade balance trends rather than the ‎political situation or official comments to get an idea of the future, ‎and in that sense there are no imminent risks," he added. ‎

But analysts warn that the friction, targeted tariffs and restrictions with the U.S. will get ‎tougher this year, which is expected to drag on the economy. ‎

James Royce, Director of Mergers & Acquisitions at Evans Chamberlain Asset Management noted that "the lagging impact ‎of the yen's weakness ‎in 2017 boosted growth last year, while recent appreciation will have ‎the opposite effect this year and may hurt business sentiment and confidence among ‎Japanese manufacturers."‎

SOURCE Evans Chamberlain Asset Management