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Japan registers 1st trade deficit in 4 months

Japan registered its first trade deficit in four months, weighed by sluggish exports and weakness in overseas economies that led to the decline. Also, the worries over the outcome of Brexit referendum have further affected the trade balance. However, recent polls are seen to advance on the 'Bremain' camp, which is likely to spur hopes for the overall economy.

The value of exports dropped 11.3 percent from a year earlier to 5.09 trillion yen, down for the eighth straight month, while imports plunged 13.8 percent to 5.13 trillion yen for the 17th consecutive monthly fall, the Finance Ministry said in a preliminary report.

The adjusted trade balance came in at JPY270 billion, wider than a surplus of JPY130 billion expected for May, while exports dropped 11.3 percent, more than the 10.4 percent year-on-year fall seen and imports came in as expected, down 13.8 percent year-on-year.

Exports to China, a major destination for Japanese products, shed 14.9 percent to 901.94 billion yen for the third consecutive monthly decline, while imports from the country declined 9.7 percent to 1.30 trillion yen, down for two months in a row.

Japan's shipments to the United States fell 10.7 percent to 969.87 billion yen for the third straight monthly decline, while imports fell 8.5 percent to 624.23 billion yen, down for three consecutive months.

Exports to the European Union declined 4.0 percent to 577.80 billion yen for the first decline in four months and imports slipped 1.5 percent to 651.44 billion yen for the third consecutive monthly decrease.

Meanwhile, two opinion polls released on Saturday showed that support for the 'Remain' camp has regained its grip over a vote to leave, while a third showed momentum shifting in favor of a vote to remain in the 28 member bloc for the June 23 vote.

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