New Zealand’s merchandise-trade accounts swung back into deficit in July as a surge in imports outpaced a smaller rise in exports. Imports climbed to NZ$7.28 billion from a revised NZ$6.33 billion in June, while exports edged up to NZ$6.71 billion. The monthly balance moved to a deficit of NZ$578 million, reversing the previous month’s NZ$142 million surplus. On a 12-month basis the shortfall narrowed slightly to NZ$3.94 billion from NZ$4.37 billion but remained a drag on growth. Separate figures from Japan’s Ministry of Finance showed robust overseas appetite for Japanese equities. In the week ended 15 August, foreign investors bought a net ¥1.16 trillion of Tokyo-listed shares, more than doubling the prior week’s inflows. Foreign purchases of Japanese bonds slowed to ¥197.9 billion, while domestic investors sold ¥313.6 billion of overseas bonds after a net purchase the week before and bought ¥395 billion of foreign equities. The data point to shifting capital flows as investors re-allocate amid diverging interest-rate paths and earnings prospects in major economies.
Japan Security Flows (w/o Aug 15): Japan Buying Foreign Bonds: ¥-313.6B (prev ¥254.9B) Japan Buying Foreign Stocks: ¥395.0B (prev ¥-225.5B) Foreign Buying Japan Bonds: ¥197.9B (prev ¥733.2B) Foreign Buying Japan Stocks: ¥1,161.7B (prev ¥489.3B)
Japan Security Flows W/o Aug 15: - Japan Buying Foreign Bonds: ¥-313.6B (prev ¥254.9B) - Japan Buying Foreign Stocks: ¥395.0B (prev ¥-225.5B) - Foreign Buying Japan Bonds: ¥197.9B (prev ¥733.2B) - Foreign Buying Japan Stocks: ¥1161.7B (prev ¥489.3B)
FOREIGN INVESTMENT JAPANESE BONDS ACTUAL 197.9B (FORECAST -, PREVIOUS 733.2B) $MACRO
