Japan logged trade deficit in December as exports dropped 3.8 percent

Japan posted a bigger-than-expected trade deficit for December as the weakening of demand conditions in the global economy likely weighed over exports. 

The deficit came in at JPY 55 trillion, beating the estimated figure of JPY 29.5 billion. Exports dropped 3.8 percent year-on-year, following a 0.1 percent gain in November. Meanwhile, imports rose 1.9 percent, having registered growth of 12.5 percent in November. 

Notably, exports to the US jumped 1.6 percent in annualized terms, while those to China and Asia tanked 7 percent and 6.9 percent, respectively.

A bigger-than-expected trade deficit is bad news for the Japanese yen.