Japan exports beat expectations in October as Asia and EU demand pick up

Japan’s trade data for October came in stronger than expected, with exports rising 3.6% year-on-year, comfortably beating forecasts for a 1.1% gain, according to Ministry of Finance figures. Imports also surprised to the upside, edging 0.7% higher versus expectations for a small decline. The trade deficit narrowed to ¥231.8 billion, smaller than the ¥280.1 billion projected in the poll.

The export recovery was led by firm demand from Asia, where shipments increased 4.2%, including a 2.1% rise in exports to China.

• Exports to the EU also surged 9.2%.
• By contrast, shipments to the United States fell 3.1%, suggesting softer U.S. goods demand.

The stronger trade performance offers a modest cushion for Japan’s economy as policymakers weigh the timing of the next Bank of Japan rate hike and assess whether external demand can offset sluggish domestic consumption.

This article was written by Eamonn Sheridan at investinglive.com.