Japan returns to trade surplus, monthly exports rise

Japan logged trade surplus for the first time in six years in 2016 on the back of cheaper oil imports and improvement in exports in Q4. 

Japan clocked a trade surplus of JPY 4.074 trillion from a JPY 2.792 trillion deficit in the previous year. Meanwhile, Japanese export volumes also expanded 8.4% in December from a year earlier, following a 7.4% gain in November. 

Japan moving back to surplus is good news for Yen bulls given that the currencies with current account deficits tend to perform worse during the protectionist regime.