Japan surprises with trade surplus of US$902 million

Exports fell 2.1 percent in October from the previous year, the first decline since August 2014.

Exports to the United States, a major buyer of Japanese products, rose 6.3 percent in October, led by shipments of cars, while EU-bound shipments rose 5.4 percent on rising auto exports.

Geographical distribution showed imports are down -3.6% from Asia, -22.9% from South America, -19.5% from Central and Eastern Europe and -25.4% from Africa, while up 3% from Middle East, 4.7% from western Europe, 5.9% from North America and 2.1% from Oceania.

For the first time since March 2015 Japan has recorded a trade surplus.

Japanese exports fell for the first time in 14 months in October, exacerbating concerns for an economy already in recession and struggling to muster inflation despite aggressive monetary stimulus.

The trade balance came swung to a surplus of 111.5 billion yen ($902.5 million), versus the median estimate for a 292 billion yen shortfall.

Progress on trade deals that Japan is working on with the USA and other nations may boost both imports and exports in the future.

Japan posted a surprise trade surplus last month as the value of energy imports slumped on falling oil prices, official data showed yesterday.

The benchmark Nikkei 225 index was up 1.1% to 19,863.85 in early trading.

They were also looking ahead to the outcome from the end of the Bank of Japan’s two-day policy meeting later in the day.