According to government data released Friday, Japan’s exports in October significantly rose at 3.6% year-on-year, beating the 1.1% growth forecast by economists polled by Reuters, though this was slower than September’s 4.2% increase.
Shipments to Asia were up 4.2%, while exports to Western Europe surged 8.8%, which offset a 2.7% decline in exports to North America, including a 3.1% drop in goods shipped to the U.S. Automobile exports—the largest Japanese export category to the U.S.—fell 7.5%, a less severe drop than the 24.2% decrease in the previous month.
Concurrently, imports to Japan also surprised by rising 0.7% year-on-year, defying expectations of a 0.7% decline.
This data was released amid ongoing diplomatic tensions between Japan and China, following remarks by Prime Minister Sanae Takaichi regarding Taiwan.
The Asia Group noted that China has suspended seafood imports from Japan, and some Japanese brand stores in Shanghai and Beijing have temporarily closed. The potential impact of these tensions may be reflected in future trade figures.
The stronger export performance offers some relief to Japan’s economy, which contracted by 0.4% in the third quarter, partly due to weaker net exports.
