Japan Recession Watch: Imports and Exports Both Plunge Most Since 2009

japan-bridgeFrom Tyler Durden: The latest Japanese imports/exports data paints a very bearish picture of Japan’s economy, which continues to fall short expectations despite easy comps and unprecedented stimulus.

For the 19th month in a row, Japanese Imports plunged – dropping 24.7% YoY (worse than expected), the biggest drop since Oct 2009. Exports were just as dismal, also missing expectations, plunging 14.1% YoY – worst since Oct 2009. The biggest driver of the collapse of Japanese trade was a 44% crash in the Chinese trade balance.

There’s no lipstick to put on this pig… it’s a disaster.. and worse still Yen is strengthening back below 100 against the USD.

Charts: Bloomberg

This news comes just days after Japan’s Q2 GDP rose only 0.2%. Meanwhile, Japanese banks are also reportedly struggling to make money amid low rates. Japanese regulators have responded to the long-term economic downturn with interest rate cuts and hundreds of billions in stimulus measures, which don’t seem to be working.

The iShares MSCI Japan ETF (NYSE:EWJ) closed at $12.39 on Wednesday, up $0.10 (+0.81%). The EWJ, which is the largest Japanese equity-focused ETF, has risen 2.23% year-to-date.


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