MNI BRIEF: Japan Oct Exports Rise Again, Autos Increase

Japan's exports posted the second straight y/y rise in October, thanks to the increase of automobiles and ships, up 1.6% following September's 4.3%, data released by the Ministry of Finance showed on Thursday.

Exports of automobiles rose 35.4% in October, accelerating from 26.9% y/y in September, and exports of ships increased 37.3% compared to a 3.0% fall the prior month, indicating recovering demand as supply-side restrictions ease.

The data was largely within the Bank of Japan's view that exports has been affected by developments in overseas economies but it has been more or less flat.

Imports fell 12.5% y/y in October, slowing from -16.3% in September, the seventh straight drop. Japan posted a trade deficit of JPY662.5 billion, the first deficit in two months following September's JPY72.09 billion surplus.

Exports to China, Japan's largest trading partner, fell 4.0% in October for the 11th straight drop following -6.2% in September, showing that the economy continued to slow. Exports to the U.S. rose 8.4% in October for the 25th straight rise following 13.0% in September, reflecting its persistently strong economy despite rate hikes. Exports of automobiles to the U.S. rose 37.9% vs. +34.0% in September.