Japan exports rise more than expected in October, rebounding from 43-month low

Japan exports rise more than expected in October, rebounding from 43-month low 

Japan's exports rose 3.1% in October compared to the same month last year, recovering from a 1.7% decline in September, which marked a 43-month low. This growth exceeded the 2.2% increase anticipated by economists surveyed by Reuters.

Government data highlighted a significant 35.4% surge in exports to the Middle East, the strongest regional growth. Meanwhile, imports into Japan saw a modest 0.4% rise, defying expectations of a 0.3% decline.

As a result, Japan’s trade deficit widened to 461.2 billion yen ($2.98 billion), surpassing the Reuters forecast of 360.4 billion yen and September’s revised figure of 294.1 billion yen.

Daniel Hurley, a global equities portfolio specialist at T. Rowe Price, noted in a November 19 commentary that U.S. President-elect Donald Trump's policies on tariffs and trade partnerships could significantly influence Japanese equities.

“Tariffs pose a major risk for an open, export-driven economy like Japan's,” Hurley said, emphasizing the close economic ties between Japan and the U.S. He added that any escalation of U.S.-China trade tensions could adversely affect global trade and economic growth, with Japan likely to feel the impact due to its cyclical and export-reliant economy.