JAPAN’S exports fell for an eighth consecutive month in May as shipments to China, the United States and Europe slumped, undermining Prime Minister Shinzo Abe’s efforts to revive the economy.

    Overseas shipments declined 11.3 percent in May from a year earlier, the Ministry of Finance said yesterday. Imports fell 13.8 percent, leaving a trade deficit of 40.7 billion yen (US$389 million).

    Exports fell in May on declines in shipments of steel, semiconductors and electronic parts.

    A series of earthquakes struck the southern manufacturing hub of Kumamoto in mid-April destroying homes, triggering landslides and stopping production of electronics and car parts at factories in the area.

    Many companies were able to resume production quickly, but it has taken a while for some plants to return to full capacity.

    Exports to China, Japan’s largest trading partner, fell 14.9 percent in May, while the U.S.-bound shipments fell 10.7 percent year on year.

    Exports to Asia, which accounts for more than half of Japan’s shipments, fell 13.0 percent in the year to April and EU-bound shipments fell 4.0 percent.

    Japan’s modest economic gains this year are at risk as a slowdown in overseas demand and the yen’s surge make the nation’s products less appealing overseas and hurts the earnings of exporters.

    Exports are likely to expand in coming months as overseas demand shows signs of stabilizing, but Abe remains under pressure to support growth as further gains in the yen threaten exports and corporate earnings.

    Finance Minister Taro Aso also escalated his concern over the yen Friday, calling for coordination with his overseas counterparts to address what he described as disorderly moves in the currency market.

    “Exports are still weak as overseas demand remains dull and the effects of the weak yen last year are dissipating,” Atsushi Takeda, an economist at Itochu Corp. in Tokyo, said before the report was released. “With the Brexit vote coming up and expectations over Fed rate hikes weakening, the yen’s appreciation could be prolonged, increasing downside risks to Japan’s economy.”

    While the yen slipped 3.8 percent in May, it’s jumped 15 percent this year against the U.S. dollar. The yen rallied to the strongest level since August 2014 last week after the Bank of Japan left monetary policy unchanged.

    Aso said Friday that he was “very concerned” about one-sided, abrupt, and speculative moves in the currency market.

    Toyota Motor Corp. has warned that annual net income will probably decline for the first time in five years, due to the stronger currency.

    A strong yen also complicates the Bank of Japan’s attempts to encourage inflation because it reduces the cost of imported goods.

    (SD-Agencies)