American and Asian exporters benefit most from Japanese import

American and Asian exporters benefit most from Japanese import
boom

TOKYO (AFP): Exporters from the United States and Asian
countries, notably China, are benefiting most from the current
boom in Japanese imports, leaving their European competitors
largely behind.

Computer chips from the United States, textiles from China and
timber products from Southeast Asia were among the major items
which helped boost Japan's imports by 4.8 percent to US$244
billion in the year to March.

While imports of office equipment and cars from Europe also
benefited from a stronger yen, total imports from the European
Union (EU) were stagnant, a sharp contrast to the surge in
imports from the United States and Asia.

Figures released by Japan's finance ministry show that lumber,
textiles and semiconductors together accounted for precisely half
the overall increase in Japanese imports in the year to March.
Imports of seafood, office equipment and timber products were
also a driving force.

Asian countries accounted for almost three quarters of the
import surge, with China alone accounting for more than a third
and the six-member Association of Southeast Asian Nations (ASEAN)
almost a quarter. ASEAN groups Brunei, Indonesia, Malaysia, the
Philippines, Singapore and Thailand.

The United States meanwhile absorbed almost 40 percent of the
increase. But the EU contribution was zero with increased imports
from Britain offset by lower imports from Germany and France, the
ministry said.

Lower oil prices resulted in imports from the Middle East
making a negative contribution.

Economists here say much of the dominant Asian share in the
Japanese import surge is linked to the growing amount of
products, notably in the electronics sector, produced by Japanese
companies in Asia.

But there are other factors at play.

"The yen didn't go up as much against European currencies as
it did against the dollar," said Michael Hartnett, economist at
Schroder Securities (Japan) Ltd., noting that this made US and
Asian goods more competitive.

In addition, "you've got to look at what Europeans produce --
wines from France and fur coats from Germany," Hartnett said,
adding that the recent revival in Japanese consumer spending was
not geared toward expensive products.

Japanese imports from Asia leapt 10.9 percent to $83 billion,
led by textiles, timber products, seafood, semiconductors and
office equipment.

In the financial year to March, Japan's imports from the
United States, its biggest single trading partner, grew 8.4
percent from a year earlier to almost $57 billion, led by
semiconductors, lumber, meat and textiles.

Imports jumped 28 percent to $2.9 billion for semiconductors,
by 13 percent to $3.3 billion for lumber, by 14 percent to $2.7
billion for meat and by 52 percent to $907 million for textiles.