Japan’s October trade balance likely improved

Japan's trade balance is expected to have reached a balance level in yen terms in October. This will be a significant improvement in the trade as it recorded deficit of JPY742bn in October 2014. On a seasonally adjusted basis, the trade deficit might have reduced to JPY90bn in October, against September's JPY356bn deficit, says Societe Generale in a research note. 

Due to modest recovery in US economy and uncertainty prevails the Chinese economy, Japan's export recovery is expected to remain weak.

"Exports in October are expected to have grown by 1.0% yoy (0.5% in September), while imports likely shrunk by 9.1% yoy (-11.0% yoy in September)", estimates Societe Generale.