Japanese trade tanks

I don’t bother covering Japan much its price effects in the global economy (for Australia) are subsumed by China these days but it is worth noting that data today showed exports plunged -12.9% in January and imports tanked -18%. Exports to Asia were -17.8% and to China -17.5%. Some of this is commodity prices but not all as the export numbers show. All year or year:

 

Given Korean exports tanked -18% in the same month I think it fair to say that North Asia slowed quite a lot in January!

Comments

  1. How does that compare to GFC trade slowdown?

    Is this a leading indicator, while we look at it as a lagging indicator resulting from some incident or other. Perhaps we have had THAT incident !

    • Seems like your call from a few weeks back (and Janet had the same idea from memory) about things turning pretty sour were right…liquidity crunch and all …

      • SENIOR BOJ OFFICIAL: BOJ HOLDS ROUGHLY 7.8 TRLN YEN IN ETFS AS OF SEPT 2015, WHICH IS 54 PCT OF JAPAN’S TOTAL ETF MARKET – RTRS

        Its. Pure. Madness. (as of Sep, they’ve prob bought more since)

        But hey, I’m not a Central Banker, so what the heck would I know

  2. Would some of the drop in import would be linked to cheaper gas and oil? The number is still pretty scary though.

  3. Looks like a global recession to me. Those Asian economies are so insanely leveraged to world trade.
    South Korea from memory has exports as over 40% of GDP from memory

  4. proofreadersMEMBER

    Poor old “pyromaniac” Central Banker Kuroda!!! He can’t take a trick. It looks like he is going to have to throw some more “petrol” (QE, negative interest rates etc etc) on the “funeral pyre” that is the Japanese economy.