Japan

Japan exports grew less than expected. Both exports and imports were below expectations. September exports: +11.5 % vs expectations of +15.6 % and pevious +14.6 %. September imports +16.5 % vs expectations +20 % and +16 % previous. Exports to the United States, the European Union and Asia all continued to increase in September YoY but at a slower pace than in August. The miss may be due to seasonal factors rather slowing fundamental demand. Positive was exports to Europé (cars). Negative was US (weaker capital goods). A notable slowdown in exports to Asia. Up 8.2 % YoY last month versus 13.5 % in August. The weaker yen policies has not managed to offset declining demand from emerging economies. Overall, the weak yen boosting exports but inflating the cost of importing e.g fuel, resulting in the worst trade deficit on record and the 15th straight monthly trade deficit in September.

“The big exports miss seems to suggest that “the positive effect of the weak yen may have run its course.” (RBS)

Japan Trade Balance

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