Japan Adjusted Trade Balance

Japan's Adjusted Trade Balance Index shows difference between exports and imports. A positive value indicates a trade surplus, while a negative one hints at a trade deficit. The index is seasonally adjusted.

Japan is not a country where crude oil can be taken, so most of the energy is dependent on oil producing countries. There are also hydro, geothermal, wind and nuclear power, but these types have a smaller share compared to thermal power. Therefore, it is necessary to import a large amount of crude oil, which has a large impact on the trade balance.

The trade balance of Japan was a deficit, when the price of oil rose sharply, but it is generally profitable in the basic trend. This is because Japanese export includes high value-added industrial products, while imports tend to include a lot of energy and industrial raw materials and are significantly less likely to increase.

The impact of the Trade Balance report on Japanese Yen is ambiguous and it also depends on many other economic indicators. In addition, Japanese yen tends to be more affected by foreign indicators than domestic ones.