MNI BRIEF: Japan's Oct Exports Rise; Auto Exports Slow

October exports continued to support the Bank of Japan view that exports are trending higher as the effects of supply-side constrains wane, but bank officials are worried about the prospect of a slowdown caused by weaker overseas demand.

Japan's exports rose 25.3% y/y in October for the 20th straight rise following a 28.9% y/y increase in September. Imports rose 53.5% y/y for the 21st straight gain following an increase of 46% in September, data released on Thursday by the Ministry of Finance showed.

Japan posted a trade deficit of JPY2.16 trillion in the wake of high resource prices, leading to the 15th straight deficit following a deficit of JPY2.09 trillion in September.

Exports of automobiles rose 81.0% y/y in October, slowing from a gain of 122.3% in September, showing that automobile makers are increasing production as the semiconductor shortage eases.

Exports to China, Japan's largest trading partner, rose 7.7% in October for the fifth straight rise following 17.1% rise in September. Exports of automobiles rose 71.8% in October, slowing from an increase of 336.8% in September.

Exports to the U.S. rose 36.5% in October for the 13th straight rise following +45.3% in September. Exports of automobiles to the U.S. rose 78.6% vs. +119.2%. Bank officials expect a slowing in the U.S. economy caused by rate hikes by the Federal Reserve to become clearer next year, slowing Japan’s export growth.