Japan’s October Exports Top Forecasts on Strong Asia and EU Demand
Japan’s trade engine picked up speed in October, offering a brighter signal for the country’s external sector and modest support for the yen. Fresh figures show export momentum returning as orders from Asia and the European Union accelerated, even as shipments to the United States cooled.
Exports rose 3.6% year-on-year in October, beating market expectations of a 1.1% increase. Imports also surprised on the upside, edging 0.7% higher versus forecasts for a slight decline. The trade deficit narrowed to ¥231.8 billion, better than the projected ¥280.1 billion gap, pointing to an improved trade balance as global demand stabilizes.
Regional performance was mixed. Shipments to Asia climbed 4.2%, including a 2.1% rise in exports to China, while exports to the EU surged 9.2%. In contrast, U.S.-bound shipments fell 3.1%, underscoring softer American goods demand. The resilient external backdrop may help offset weak domestic consumption and could factor into the Bank of Japan’s policy calculus as markets watch the timing of the next rate move.
Key Points – Exports increased 3.6% year-on-year in October, beating the 1.1% consensus. – Imports rose 0.7%, defying expectations for a small decline. – Japan’s trade deficit narrowed to ¥231.8 billion, better than forecast. – Exports to Asia grew 4.2%, including a 2.1% rise to China. – EU-bound shipments jumped 9.2%, while U.S. exports slipped 3.1%. – Stronger external demand may offer slight support to the yen and inform Bank of Japan policy.
