Japan’s Trade Deficit Shrinks 34% In October On Chip Equipment Exports

Japan’s trade deficit narrowed by 34.4% year-on-year in October to 461.25 billion yen ($3 billion), buoyed by record export levels for the month driven by strong demand for semiconductor manufacturing equipment and pharmaceutical products, Kyodo News reported.

Japan's export growth was supported by robust shipments of chipmaking equipment to China and pharmaceuticals to the United States. I Photo: 掬茶 Wikimedia Commons

Although Japan posted a trade deficit for the fourth consecutive month, exports grew 3.1% year-on-year to 9.43 trillion yen, marking the first increase in two months. Imports rose by 0.4% to 9.89 trillion yen, continuing a seven-month streak of growth, according to preliminary data from the Finance Ministry.

Export growth was supported by robust shipments of chipmaking equipment to China and pharmaceuticals to the United States.

On the import side, higher demand for personal computers from China contributed to the rise.

The yen appreciated by 2% against the US dollar in October compared to the same period last year, the Finance Ministry noted. While the trade deficit has improved, sustained shortfalls are anticipated, said Kazuma Kishikawa, an economist at Daiwa Institute of Research.