Japan's exports fall for 8th straight month in May as "Abenomics" continues to lose steam

Japan's exports declined for an eighth successive month in May the Finance Ministry said on Monday as major destinations including the United States, China and Europe saw shipments drop in a further sign Prime Minister Shinzo Abe's "Abenomics" economic recovery mix is running out of steam.

Shipments overseas tumbled 11.3 percent on year in May from a year earlier, the ministry said, with the figure coming in above median analysts' forecasts. With imports slumping 13.8 percent in the recording month, the trade deficit stood at 40.7 billion yen (388 million U.S. dollars) in May, the ministry said.

Of note, exports to the United States dropped 10.7 percent in May from a year earlier, while those to China slumped 14.9 percent. Shipments to the European Union, meanwhile, dropped 4 percent, the government's latest data showed.

Steel shipments plummeting 24 percent in value dragged down the overall figure, with a notable slump in the value of semi-conductor-related shipments also weighing heavily at a 20 percent decline.

One local analysts maintained that exports have remained weak as demand from overseas is still lackluster and being compounded by the yen's strength of late. The economist added that the upcoming vote in Britain as to whether to leave or remain in the European Union had also unsettled the markets, coupled by the yen' s strength being maintained by the U.S. Federal Reserve opting to hold out on any interest rate hikes and Japan's central bank also staying pat on policy recently.

In total, these factors would increase the overall downside risks to Japan's economy, the economist said, and further undermine Abe's already questionable economic policy blend.

Imports, meanwhile, have been adversely affected by the yen's appreciation, impacting oil and natural gas import prices, the finance ministry's data also showed.

(APD)