Japanese exports fell for the 15th consecutive month in February, as shipments to the United States and China contracted. The trade balance had a surplus of 1.110 trillion yen, the biggest since September 2007.
According to the data released by the Japanese Ministry of Finance, exports fell by 1 percent (year-to-year) in February, as cars and metal shipments to the United States and China fell. The fall was smaller than expected, economists expected a 4.3 percent contraction and below the previous month figure, as exports fell 2.6 percent in January.
Exports to China fell by 0.4 percent, driven down mostly by the decline in ground products for chemical exports and chip parts. Exports to the United States went down 2.6 percent, as cars and semiconductor production equipment shipments fell.
Imports fell 14 percent due to a contraction in domestic demand caused by the spread of the coronavirus epidemic. Imports from china went down 47.1 percent, the biggest drop since August 1986.
The Japanese prime minister, Shinzo Abe recently announced the implementation of a stimulus package and that the government is conducting expert hearings on the package from tomorrow and introducing a moratorium on social security contributions and a grace period of payment of national taxes public utility fees. Besides this, the Japanese government warned against traveling overseas as well as banning nationals from Spain, Italy, Switzerland, and Iceland.
By 10:52 GMT the US dollar went down against the 0.32 percent against the Japanese Yen, falling to the 107.33 level. Conversely, the Euro went down by 0.24 percent against the Japanese Yen, falling to the 118.10 level.
ECB Says that it's Ready to Take Measures to Support the Economy
The European central bank reiterated that it is ready to take further measures to support the Eurozone economy, which is currently being stricken by the effects of the spread of the coronavirus epidemic on the continent.
The ECB said that it “stands ready to adjust all of its measures, as appropriate, should this be needed to safeguard liquidity conditions in the banking system and to ensure the smooth transmission of its monetary policy in all jurisdictions.”
The ECB statement contradicts the Austrian central bank chief Robert Holzmann's early remarks, as he claimed during an interview that monetary policy was at its limits. Holzmann retracted his comments afterward, adding that the monetary policy toolbox is well stocked.
“Monetary policy has not yet reached its limits, not by a long stretch,” he said.
By 11:09 GMT the Euro went down by 0.03 percent against the US dollar, falling to the 1.0993 level. Conversely, it went down against the Swiss Franc by 0.09 percent at 1.0556 and fell against the Japanese Yen by 0.41 percent, at 117.90.