TOKYO: Japanese exports increased less than expected in September, dogged by weaker demand in China and other Asian economies.
Merchandise exports eked out a 0.6% gain from a year earlier in value terms to Y6.417 trillion, rising for the 13th consecutive month, the finance ministry said. That compared with a 3.4% increase expected by economists surveyed by The Wall Street Journal. The gain was the smallest of the 13-month span despite the yen’s weakness against the dollar.
China’s economic slowdown has sent ripples across the global economy, hitting manufacturers in Asia’s export-reliant economies, from Japan and South Korea to Malaysia and Vietnam. Japanese industrial production fell in July and August, raising the specter of a second recession in as many years and fueling expectations for additional fiscal and monetary stimulus.
Exports to China–Japan’s second-largest export market–fell 3.5% in September after sliding 4.6% in August, the second consecutive month of decrease, the data shows. Exports to Asia as a whole also declined 0.9% in September, the first decrease in seven months.
Overall export volumes decreased 3.9% in September, the third straight monthly fall. Economists generally see volumes as a better gauge of strength in Japanese exports.
Japanese imports fell 11.1% to Y6.532 trillion, the ninth straight monthly fall and the largest pullback since March’s 14.4% drop.
Japan’s trade balance came to a Y114.5 billion deficit, compared with a Y961.98 billion shortfall a year earlier. Economists polled by the Nikkei and The Wall Street Journal had forecast a surplus of Y100.00 billion.
