JAPAN’S export growth held steady in October, suggesting that brisk global demand for Japanese cars and electronics will likely carry its economic recovery into the current quarter.

Ministry of Finance (MOF) data out yesterday showed that exports rose 14 percent year on year in October, led by shipments of cars to Australia and liquid crystal device production equipment and raw materials for plastics to China.

The trade figures followed data that showed last week Japan’s economy expanded at an annualized rate of 1.4 percent in the third quarter, driven by solid external demand.

Analysts expect exports will continue to drive growth in the October-December period as China is seen likely to avoid a sharp slowdown thanks to infrastructure investment, and as progress on tax cuts brightens prospects for the United States.

“Looking at the near term, demand for electronics parts used for new-model smartphones are expected to help Japan’s exports,” said Masaki Kuwahara, senior economist at Nomura Securities.

“In the longer term, brisk demand for capital expenditure in advanced nations will support the global economy and Japan’s exports as receding political uncertainty releases pent-up demand for upgrades of existing production facilities.”

In volume terms, Japan’s exports rose 3.8 percent in October from a year ago, after a 4.8 percent year-on-year gain in September.

The value of exports to the United States rose 7.1 percent in the year to October, led by motors and construction and mining machinery, following an 11.1 percent gain in the previous month.

Japan’s trade surplus with the United States rose an annual 11.3 percent in October to 644.7 billion yen (US$5.75 billion), a source of concern given President Donald Trump’s demand for bilateral trade talks to fix trade imbalances under his “America First” policy. (SD-Agencies)