The Japanese exports fell in January as a result for the ongoing yen's strength along with the weakening in the global demand, which negatively affected the manufacturers' profits and slow the nation's recovery from last year's earthquake.
The shipments dropped 9.3%from a year earlier and almost inline with the economists forecast of 9.4% decline, which means that the international competitiveness of Japanese manufacturers is retreating.
As, January's total of merchandise trade balance's deficit widened to -1457.01 billion yens, compared with the revised reading of -205.6 billion yens, which was initially -205.1 billion yens, also it missed expectations of -1415.2 billion yen.
On the other hand, January's adjusted merchandise trade balance's deficit widened to -612.8 billion yens, compared with the revised reading of -568.7 billion yens, which was initially -567.6 billion yens, yet it exceeded expectations of -796.5 billion yens.
The nation's currency advanced and almost paralyzed business at companies including Sony Corp., Japan's largest consumer electronics exporter, which more than doubled its annual loss forecast this month.
Japan last year posted its first annual trade deficit since 1980 and the Bank of Japan last week unexpectedly expanded stimulus a day after a government report showed gross domestic product contracted last quarter.
Japan's GDP contracted an annualized 2.3% last quarter. Net exports, or overseas shipments less imports, subtracted 2.6% points from this figure.
Moving to the nation's currency, as the USD/JPY pair is slightly advancing against the U.S. dollar directly after the issuance of the merchandise trade balance, as the pair is currently trading around 79.63, after recorded its highest price at 79.88 and lowest at 79.55
