MNI BRIEF: Japan Oct Exports Post First Rise In Two Months
MNI (TOKYO) - Japan’s exports in October increased 3.1% y/y, higher than the 1% market estimate, and its first year-on-year rise in two months following September's 1.7% fall due to higher semiconductor manufacturing equipment and median products shipments, data released by the Ministry of Finance showed on Wednesday.
The data was largely within the Bank of Japan’s latest assessment and will support the bank’s rate hike path, but bank officials are vigilant against the impact of slowing overseas economies, particularly China and the eurozone, on Japanese exports.
Exports of automobiles fell 0.9% in October following September's 9.2% drop, hit by slowing demand overseas, while semiconductor manufacturing equipment shipments rose 42.6%, up from the prior month's 26.3% gain. Imports rose 0.4% y/y for the seventh straight rise, but were down from September's 2.1% increase.
Japan's trade deficit was JPY461.2 billion, the fourth straight deficit, following September's JPY294.1 billion deficit.
Exports to China, Japan's largest trading partner, rose 1.5%, the first rise in two months following -7.3% in September, while shipments to the U.S. fell 6.2% for the third straight drop following -2.4% in September. Exports of automobiles to the U.S. fell 10.1%, narrowing from -18.9% in September.