Japan September drop in exports was the first in ten months

The data on Japan’s September trade performance is here:

• Japan data: September exports -1.7% y/y (expected +0.5%) & imports +2.1% (expected +3.2%)

That drop in exports was the first in ten months. You’ll note in the linked post that exports fell to China, the EU and US. Weak demand for autos and the stronger JPY are cited as impacting.

If poor performance continues, and spreads to other sectors of Japan’s economy, it’ll make it more difficult for the BoJ to hike rates.

Reuters cite remarks from Daiwa:

• “It’s possible that exports will continue to struggle in
  coming months in light of uncertainties particularly in the
  Chinese economy,”
• “The latest data serves as a reminder for the BOJ that a
  sharp rise in the yen can drag exports”

This article was written by Eamonn Sheridan at www.forexlive.com.