TOKYO (AP) – Japan’s exports surged 13.5 per cent in May, faster than expected growth helped by a weak yen and strong demand in the United States (US) and Asia.

Finance Ministry data reported Wednesday showed that the trade deficit totaled JPY1.22 trillion, down nearly 12 per cent from JPY1.38 trillion a year earlier. Imports grew 9.5 per cent, year-on-year, to nearly JPY9.5 trillion.

Exports totaled JPY8.3 trillion and grew at the fastest since November 2022.

Shipments to the US were up nearly 24 per cent and those to the rest of Asia rose more than 13 per cent, led by double-digit growth in shipments of vehicles, electronics and machinery.

Trade with Europe mostly fell.

The value of Japan’s imports tends to grow when the Japanese yen loses value against the US dollar and other major currencies. The dollar is trading at nearly JPY158, up from JPY140 levels a year ago.

Japan is a resource-poor nation that imports almost all its oil, and higher imports of oil, gas and other fuels are a big factor behind the deficit in May, for the second month in a row.

Fruit imports also gained in May.

But a large factor behind the increases in both exports and imports was rising prices overall, which inflated their value compared with a year earlier, Marcel Thieliant of Capital Economics said in a report.

That can be seen in the muted impact of trade on the economy, which contracted at a 1.8 per cent pace in the first quarter of the year.

In fact, “most of the increase in trade values over the past year reflects rising prices due to the sharp weakening of the yen rather than any marked improvement in volumes”, it said.

HONG KONG (AFP) – Asian equities were mixed yesterday following yet another record day in New York fuelled by data that boosted United States (US) interest rate cut hopes, with expectations tempered by cautious comments from Federal Reserve (Fed) officials.

In Europe, London fell at the open even after data showed United Kingdom (UK) inflation had eased to the Bank of England’s two percent target.

The below-forecast May US retail sales figures pointed to signs of fatigue among American consumers – a crucial driver of growth – suggesting the world’s number one economy was slowing and giving the central bank room to ease monetary policy.

The reading helped to slightly offset a surprisingly large jump in US jobs creation that pointed to a still-resilient labour market despite a long-running campaign of rate hikes and stubbornly high inflation.

The S&P 500 and Nasdaq clocked up more records, driven again by a surge in demand for Big Tech, with chip giant Nvidia overtaking Microsoft to become the world’s most valuable publicly traded company.

Nvidia, a titan in the artificial intelligence sector, hit a market capitalisation of USD3.349 trillion after cruising nearly 3,500 per cent higher in the past five years. And one analyst predicted it could even hit USD5 trillion in the coming year, according to Bloomberg News.

Shares in Hong Kong piled on nearly three percent after a recent run of weakness, with analysts saying investors were hopeful for fresh market-friendly measures to be announced at a forum in China being attended by securities regulator chief Wu Qing and central bank boss Pan Gongsheng.

“There’s anticipation of positive policies and expectations of reforms for banks regarding shareholder returns. I suspect the policies could be more relevant for Hong Kong-listed shares,” said Billy Leung, at Global X ETFs.

Tokyo, Singapore, Seoul, Mumbai and Jakarta also rose but Shanghai, Sydney, Manila, Bangkok and Wellington edged down.

London opened slightly lower. Investors were unfazed by news that inflation had hit two per cent in May, in line with expectations. The pound was barely moved.

Paris and Frankfurt were also down.

“The (retail sales) data clearly reflects a shift in US consumer behaviour, which is becoming more conservative, feeling the pinch from higher interest rates, curbing wage increases and a depletion of savings,” said Rodrigo Catril of National Australia Bank.

“Importantly, too, we expect more of the same over coming quarters.”

The Fed’s so-called “dot plot” guidance to interest rates showed officials see just one cut before January, down from three predicted in March, and while some observers are optimistic for two, or even three, decision-makers remain reluctant.

On Tuesday, Fed governor Adriana Kugler said the policy was “sufficiently restrictive to help cool the economy and bring inflation back toward two per cent without a sharp contraction in economic activity or a significant deterioration of the labour market”.

And St Louis Fed boss Alberto Musalem added that he needed to see a “period of favourable inflation, moderating demand and expanding supply” before he could consider easing.

“These conditions could take months, and more likely quarters to play out,” he warned.

PHNOM PENH (XINHUA) – The Regional Comprehensive Economic Partnership (RCEP) and bilateral free trade agreements (FTAs) have helped boost Cambodia’s economic growth and diversify exports, Cambodian Prime Minister Hun Manet said yesterday.

Cambodia is a member of the RCEP agreement that engaged with 15 Asia-Pacific countries, and the Southeast Asian country also has bilateral FTAs with China, South Korea and the United Arab Emirates.

“As an active member of the Association of Southeast Asian Nations (ASEAN) and RCEP, Cambodia has a high possibility of access to huge markets,” he said at a Cambodia-Singapore Business Forum held in Singapore and his speech was broadcast live on the state-run TVK.

The bilateral FTAs with China, South Korea and the United Arab Emirates have also further strengthened Cambodia’s economic growth and diversified its exports, Hun Manet said, adding that the kingdom’s economy is projected to achieve a growth rate of six per cent in 2024, up from five per cent in 2023.

On the export side, Cambodia shipped products worth USD10.18 billion to the international markets during the first five months of 2024, up 10.8 per cent from USD9.18 billion over the same period last year, according to a report from the Ministry of Commerce.

The export to the fellow RCEP countries was valued at USD3.97 billion, or 39 per cent of the kingdom’s total export. During the January-May period this year, the figure was up 12.4 per cent from USD3.53 billion over the same period last year, the report added.

RCEP comprises 15 countries including the 10 ASEAN member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and their five trading partners, namely China, Japan, South Korea, Australia, and New Zealand.

MILAN (AP) – The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said on Tuesday.

Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States (US) as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming”.

Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted’,’ said Bain partner Claudia D’Arpizio.

She cited a “creativity crisis,’’ in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fuelled growth before the pandemic.

“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,’’ D’Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.’’

She said some “tweaks” are needed on strategy and price points, adding that “you can’t grow without the middle class and younger generations”.

Among major fashion houses, Gucci and Moschino have made runway debuts of their new creative directions, while the first Valentino collection by the new creative director hits the runway in September. Chanel has the position to fill after the incumbent resigned earlier this month.

While inflation is one element of price hikes, D’Arpizio said brands are also refocusing on the estimated six million to eight million consumers at the top of the pyramid as they search for better profit margins. At the same time, there has been less rejuvenation in the offerings.

Steep price increases for items that don’t show significant innovation, and feel like something they have seen before, leaves customers “upset and puzzled”.

Flat global luxury sales forecasts follow a pent-up post-pandemic spending surge that pushed sales during the 2021-23 period up 24 per cent over 2019 levels.

Last year, sales of personal luxury goods grew by four per cent to EUR362 billion from EUR349 in 2022, due largely to a resurgence of US and Asian tourism to Europe fuelling purchases.

Add in luxury travel, fine art, cars and yachts, the vast global luxury market expanded to EUR1.5 trillion last year – highlighting a trend toward experiences over tangible goods.

Japan is a bright spot as the return of foreign tourists with the yen at the lowest level to the US dollar in 20 years, while Europe continues strong trends due to tourist spending and an increase in local consumption, especially in French and Italian cities.