Japan's trade deficit likely widened in January: Standard Chartered

Quotes from Standard Chartered:

-Japan will release January trade data on 19 February. We estimate that the trade deficit widened to JPY 1.95tn from JPY 665bn in December.

-Historically, Japan's trade balance has performed poorly in January due to seasonal factors. We estimate that exports grew 12% y/y in January on Japanese yen (JPY) depreciation and the US market recovery.

-Auto exports have also shown signs of a pick- up in the past few months. Imports likely dropped 2% y/y as lower oil prices reduced energy import costs. We expect the trade deficit to gradually narrow in 2015 on lower imports and an export recovery.