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Last Updated: Wednesday, 25 October 2006, 06:41 GMT 07:41 UK
Weak yen boost to Japanese trade
Japanese production line worker
Japanese cars are popular because of their fuel efficiency
Japan's trade surplus with the rest of the world jumped in September as the weak value of the yen helped exports of cars and electronics.

The surplus rose nearly 7% to 1 trillion yen ($8.5bn; �4.5bn), the first time it has risen above the trillion yen mark since March 2005.

Japan's exports rose 15% year-on-year but imports jumped by 17% on high oil prices, said the Ministry of Finance.

Shipments to the US grew 20% in September, with car exports up 49%.

Toyota profits

"Japanese cars are popular in the United States because of their fuel efficiency," said Norio Miyagwa, an economist at Shinko Research Centre.

Toyota raised its profit forecast by about 30% in September because of higher exports and the weaker yen.

The yen was 5.6% lower in September than the same month in 2005, helping to push Toyota's exports up by 29%.

Japan's trade surplus is set to get even wider in coming months as its imports bill is cut by falling oil prices.


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