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.
