Japan export growth cools amid worries about China slowdown By Reuters

By Makiko Yamazaki and Tetsushi Kajimoto

TOKYO (Reuters) -Japanese exports rose in June for a seventh straight month, but the pace of growth slowed sharply from the previous month, data showed on Thursday, underscoring concerns that a slowdown in China may hamper Japan’s trade-reliant economy.

Slowing exports could dash policymakers’ hopes that solid external demand may more than offset weak domestic consumption. Japan’s economy has been expected to emerge from a sharper-than expected contraction in the first quarter.

Data from the Ministry of Finance (MOF) showed Japanese exports rose 5.4% year-on-year in June, smaller than a 6.4% increase expected by economists in a Reuters poll and cooling from 13.5% growth in May.

Imports grew 3.2% in June from a year earlier, versus a 9.3% increase expected by economists, swinging the trade balance into a surplus of 224 billion yen ($1.44 billion). Estimates were for a deficit of 240 billion yen.

Imports had risen 9.5% in May.

Export volumes fell 6.2% in June, the data showed.

By destination, exports to China by value rose 7.2% year-on-year in June, led by demand for chip-making equipment, the trade data showed, but growth slowed from the 17.8% increase in May.

Shipments to the U.S., Japan’s ally and a key market, grew 11% year-on-year in June, while those to European Union fell 13.4%.

($1 = 155.5700 yen)