NEWS / Foreign Exchange

Japan March trade surplus up 73.9 %

Japan March trade surplus up 73.9 %

Japan's trade surplus rose a stronger-thanexpected 73.9 % in March from a year earlier to 1.6335 trillion yen (USD 13.78 billion), showing exports are holding up despite a slowdown in the U.S. economy.

The median forecast from a Reuter??™s poll of 30 economists was for a 1.3458 trillion yen surplus, up 43.3 % from a year earlier on an unadjusted basis.

USD/JPY traded between 118.30 and 118.59.

Asian stocks slip

Asian stocks eased on Wednesday with earnings worries continuing to weigh on Japanese stocks, while the South Korean market retreated from a record following a lacklustre lead from Wall Street.

U.S. data on Tuesday showing consumer confidence slipped in April to its lowest since last August and sales of existing homes in March dropped sharply also kept investors cautious.

Australian financial markets were closed for the ANZAC Day public holiday and will reopen on Thursday.

At 0029 GMT, Tokyo's Nikkei had shed 1.10 % as chip tester maker Advantest Corp. slid 1.07 % and Honda Motor dropped 1.72 %.

Both companies were due to report their results later in the day.

Investors were also starting to eye next week's "Golden Week" series of national holidays.

The dollar near 2-year low versus euro

The dollar hovered near a two-year low against the euro as well as a basket of currencies on Wednesday as investors shunned it on views that U.S. economic growth will keep slowing.

The euro traded at USD 1.3635, near the USD 1.3644 high touched on Tuesday, after U.S. existing home sales posted their biggest monthly drop in 18 years and consumer sentiment hit an eight-month low, fuelling speculation that the Federal Reserve may cut interest rates from 5.25 % this year.