In another blow to Abenomics and the Central Bank’s easing activities, Japanese trade remained under pressure during October, with both exports and imports sliding on an annualized basis. According to the Ministry of Finance, exports contracted for the 13th straight month in October, declining-10.30% on an annualized basis. The export figure printed well below estimates of a -8.60% loss, only outpaced by the steep -16.50% drop in imports over the same period. The main reason behind the drop was falling shipments to the United States, China, and the European Union. The result was a trade surplus that narrowed modestly to JPY 496 billion from JPY 498 billion a month earlier. However, the dramatic weakening in the Yen over the last month might fuel a reversal in November. In the meantime, the Yen remains on the mend, sustaining the overnight strength.
Japanese Trade Retreats Further
Daily Analysis - 21/11/2016