Japan records trade surplus as export growth balances out weak China demand

Japan recorded a trade surplus of 57.3 billion yen (USD 360 million) in February, according to government data released Wednesday, reversing from a deficit a month earlier. Exports grew at a better-than-expected 4.2 per cent in February to 9.57 trillion yen, the Finance Ministry's seasonally adjusted preliminary data show. Imports grew 10.2 per cent on-year to 9.51 trillion yen following a 2.5 per cent contraction in January. Japan posted a 1.15 trillion trade deficit that month. Import costs are likely to rise as the effective closure of the Strait of Hormuz due to the war against Iran drives up oil and other energy prices. Japan imports almost all its oil, and Brent crude - the international standard - has jumped in recent weeks to about USD 100 a barrel. Geopolitical uncertainty, especially the war in Iran, looms large for Japan's export-reliant economy, but a weak yen is likely to work as a plus. The US dollar has been trading at about 159 yen, when it was below 150 yen a yea