JAPAN’S exports fell in October for a 13th consecutive month and by more than expected as the strength of the yen and sluggish foreign demand weighed on trade, although current yen weakness could change the outlook.

    Ministry of Finance (MOF) data showed yesterday that exports fell 10.3 percent in the year to October, pulled down by a strong rise in the value of the yen and lower export volumes, much weaker than the expected 8.6 percent drop and September’s 6.9 percent decline.

    The trade results came on the heels of recent data showing Japan’s economy expanded for a third quarter in the July-September period as exports recovered and imports fell.

    Exports dipped 1.4 percent in volume terms in the year to October, falling for the first time in three months and following a 4.7 percent gain a month ago.

    “Overall exports are starting to stall and this month’s results are disappointing,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.

    “The data once again show that global economic recovery isn’t necessarily smooth sailing,” said Kodama, adding that overall economic growth in the October-December period may stall.

    But Marcel Thieliant, senior Japan economist at Capital Economics, took a different view, saying that the dramatic fall in the value of the yen since Donald Trump’s election to U.S. president could help turn around Japan’s export performance.

    “Looking ahead...we expect it [the yen] to decline further next year, which should lift trade values,” he said. (SD-Agencies)