The difference between the total value of exports and the total value of imports. A positive figure indicates a trade surplus while a negative value represents a trade deficit. Because Japan 's economy is highly export-led, trade data can give critical insight into developments in Japan 's economy and changes into foreign exchange rates.

A surplus reflects capital flowing into Japan in exchange for Japanese exports, and a deficit means that capital is flowing out of Japan as imports are purchased in larger volumes by Japanese consumers. A trade surplus will act as an appreciating weight on the Yen, whereas a trade deficit will place downward pressure on the Yen's value.

Details in the Trade Balance report itself give useful insight into changing trends regarding Japanese trade. Such developments are especially important for the country, which is an export-oriented economy that has historically experienced large trade surpluses. Any affect on this could have dramatic affect on the domestic economy.

The headline figure for trade balance is expressed in millions of Yen and usually accompanied by a year-on-year percentage change figure.

Relevance : Tends to move markets on release
Release schedule : 23:50 (GMT); monthly, in the second week after the reporting month.
Revisions schedule : Few revisions
Source of report : Ministry of Finance, Customs Office ( Japan )
Web Address : http://www.mof.go.jp
Address of release : http://www.customs.go.jp/toukei/shinbun/happyou_e.htm
AKA : Japanese Foreign Trade, Japanese Balance of Trade