Japan: Trade surplus beats estimates - TDS

JPY 499.2bn ) due mainly to weaker imports, which surprisingly dropped 0.6% (versus +6.3% consensus).

Key Quotes

“Exports were also weak, up only 2.1% y/y versus 5.2% y/y consensus, but did expand for the 16th consecutive month. Meanwhile exports to the US rose only 0.2% y/y, while exports to China jumped 10.8% y/y. Investors will await the outcome of talks between Prime Minister Abe and US President Trump for further developments on the trade front. We note that the April 18 US Treasury Report highlighted Japan's large USD 69bn trade surplus with the US.”