The US has overtaken China to once more become the top destination for Japan’s exports for the first time since 2009. Figures for the 12 months to March 2013 show that over the period Japan’s exports to China fell by 9% to ¥11.3 trillion, while exports to the US rose 10% to ¥11.4 trillion.
The figures reflect not only a slowdown in China’s economic growth but the bad feeling between Asia’s two biggest economies generated by an ongoing territorial dispute over a chain of islands in the East China Sea, called Diaoyu by the Chinese while Japan refers to them as Senkakus.
The boost to trade with the US helped Japan to record its narrowest trade deficit in March this year for nine months. It also suggests that efforts by Japan’s new prime minister,
, to revive the country’s economy will become more reliant on the outlook in the US than in China, which, since the 2008 financial crisis, has assisted the export-dependent Japanese economy.
Early in 2009 China overtook the US as Japan’s top destination for exports early in 2009, after Beijing instigated an aggressive fiscal stimulus in response to the crisis. Monthly shipments to the US have subsequently exceeded those to China, but mainly in the months of January and February when trade patterns are distorted by New Year holidays in China. Japanese manufacturers’ relationships with Chinese customers were also affected by supply disruptions following the March 2011 earthquake and tsunami.
The natural catastrophe two years ago severely affected Japan’s trade figures and an overall deficit of ¥8.2 trillion for the year ended March 2013 was a record.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.