Japan trade balance for September in at a surprise deficit ... with a big underperformance from exports

While the poor exports number will see analysts call for more action from the Bank of Japan, the BOJ has already stated (logically) there is not much they can do about the poor performance of overseas economies that is therefore seeing diminished demand for Japanese made products. Further easing might boost demand at home, of course ... but there is little the BOJ can do to combat the difficult demographics Japan faces which is holding back domestic demand.

Trade Balance (September) Y -114.5bn

  • Expected Y 87bn, Prior was Y -569.4bn

Trade Balance Adjusted (September) Y -355.7bn

  • Expected Y -63.4n, Prior was Y -658.8bn

Exports, +0.6% y/y

  • Expected +3.8% y/y, Prior was +3.1
  • Exports to the UE and the US were up y/y, but to China and the rest of Asia, down

Imports -11.1% y/y

  • Expected -12.0%, Prior was -3.1%

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USD/JPY reaction is sort of like "Is this thing on?"