The large miss is due to a 11.4% increase in imports (+8.7% exp) and a 4.5% drop in exports (-4.0% exp). The fall in exports is the steepest since May and is due to a 8% drop y/y in sales to Asia. That compares with a 2% rise y/y in exports to the US.
Looks as though a combination of offshoring manufacturing and/or Chinese industrial growth will be a persistent headwind for Japan.
