Japanese Yen weakness may not prevent exports to fall

Japan's headline trade deficit widened in July to JPY268bn. The detail continues to show very weak underlying export performance. The country posted 7.6% year on year growth in exports. In volume terms, exports were down 0.7% y/y and the trend remains no better than flat. The second leg of JPY weakness (from 100 to 120 in 2014 H2) appears to be bearing no more fruit than the first (from 80 to 100 in 2013), though the lack of evidence that JPY weakness is "working" will not stop it falling further, says RCB Capital Markets in a report on Wednesday.