Japan’s Trade Surplus Rises for 3rd Month

Japan’s trade surplus grew in June for the third consecutive month, reinforcing fears of renewed trade friction with the U.S. but boosting the dollar because the latest rise was below expectations. The June trade surplus rose 27.7% from a year earlier to $8.05 billion, the Finance Ministry in Tokyo said. The surplus with the U.S., often a source of bilateral tension, grew 26.8% in June from a year earlier, to $3.21 billion. The figures were not adjusted for seasonal factors. Japanese officials stressed that the recent rise in the trade surplus was due to special factors, including an increase in Japan’s consumption tax to 5% from 3% on April 1. The measure was followed by a drop in private consumption, leading to a decrease of imports, economists said.