Japan’s exports fell by 1.7% in September, marking the first decline in 10 months due to weak demand in China and the United States. This drop comes amid concerns about global demand and its impact on Japan’s economic policies.

BulletsIn

• Exports dropped 1.7% YoY in September, first decline in 10 months.
• China’s demand weaker than expected; stimulus impact slow.
• US growth slowdown also affected export performance.
• Exports to China dropped 7.3%, Japan’s largest trading partner.
• Exports to the US fell by 2.4%, driven by weak auto demand.
• Yen’s rise, post-BOJ July rate hike, contributed to weaker exports.
• Japan ran a trade deficit of ¥294.3 billion in September.
• Imports grew 2.1% but were lower than forecasted 3.2%.
• BOJ’s future rate hikes remain uncertain; external risks being reviewed.
• Japan’s inflation target to remain at 2% through March 2027.