Japan’s export performance remains upbeat in November on declining yen, Chinese shipments rise

Exports in Japan remained upbeat during the month of November, although trade surplus during the period, eased. A slumping yen, coupled with a rise in Chinese shipments, helped bolster trade performance. Also, export values declined at the slowest pace since September 2015.

Japan’s exports fell 0.4 percent in November from a year earlier, against forecast of -2.3 percent, after declining 10 percent in October, data released by the Ministry of Finance (MoF) showed Monday. Imports declined 8.8 percent (consensus was for -12 percent), following a 17 percent drop the previous month. The country registered a trade surplus of JPY536.1 billion (USD4.5 billion) in November.

The value of exports to China, Japan's largest trading partner, rose an annual 4.4 percent, the first increase in nine months due to higher shipments of car parts, data showed.

JPY plunged 8.4 percent in November as anticipations of a U.S. interest rate hike sparked a rally in the dollar, which pushed up the yen value of Japan's exports. The yen has fallen further this month, and is now within distance of a 10-month low.

Further, exports to the United States, in terms of value, fell 1.8 percent year-on-year versus an 11.2 percent annual decline in October. An increase in car exports helped slow the overall decline in U.S.-bound exports, the data showed.

Meanwhile, USD/JPY traded at 117.30, down -0.54 percent, while at 5:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -77.43 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex