High oil prices trim trade surplus 10.4%

Japan's customs-cleared trade surplus shrank 10.4 percent in April from a year earlier to 962.8 billion yen as high oil prices inflated the value of imports, the Finance Ministry said Wednesday.

Despite the surplus fall after a 0.1 percent rise in March, exports marked the second-highest level on record, growing 7.8 percent to 5.507 trillion yen in April for the 17th straight month of increase, the ministry said in a preliminary report.

Imports rose 12.7 percent to 4.544 trillion yen, the third-highest on record, for the 14th straight monthly expansion, it said.

Merchandise trade with China was little affected by escalating political tensions and anti-Japan demonstrations -- some of which turned violent -- in several Chinese cities during the month.

Japan posted a 328.6 billion yen trade deficit with China, excluding Hong Kong, with exports growing 4.2 percent to 681.7 billion yen and imports surging 17.7 percent to 1.010 trillion yen.

The April trade surplus with all of Asia dropped 4.9 percent to 632.6 billion yen for the sixth straight monthly decline, but both import and export trade with the region remained robust.

Exports to other Asian economies were up 7.3 percent to 2.678 trillion yen, the second-highest mark on record. Imports from the region climbed 11.8 percent to 2.045 trillion yen, the third highest on record.

Private sector economists said exports were stronger than market projections, giving a boost to the world's second-largest economy, which is showing signs of growing again after the recent lull in the recovery.

"The data show exports appear to have gathered steam after marking sharp slowdowns in the first few months of the year, easing market concerns about one of the risk factors to Japan's economy -- weakness in exports," said Takahide Kiuchi, senior economist at Nomura Securities Co.

Imports of crude oil were up 28.2 percent and oil-related products were up 45.5 percent, spurred by record-high crude oil prices in April on a customs-cleared basis at $ 48.4 per barrel, a Finance Ministry official said.

Exports of steel rose 23.6 percent and automobiles climbed 13.2 percent.

The trade surplus with the United States was up 14.9 percent to 633.9 billion yen, the third straight monthly increase.

The trade surplus with the European Union gained 1.4 percent to 305.8 billion yen, up for the first rise in four months.