Overview

• Japan recorded a trade deficit of 294.3 billion yen ($2 billion) in September, driven by a 1.7% year-on-year drop in exports.
• This marks the first decline in Japanese exports in 10 months, missing market forecasts of a 0.5% increase.
• The decrease in exports is primarily attributed to reduced demand from China and the United States, Japan's largest trading partners.
• Imports grew by 2.1% in September, contributing to the trade deficit, although this was below the expected 3.2% increase.
• The Bank of Japan remains cautious about external economic risks, with no immediate changes expected in its interest rate policy.