Japan’s finance ministry said that a sharp decline in the yen’s exchange rate as well as recovering foreign demand in November boosted shipments from the trade sector.
According to the latest data, exports fell by 0.4% on a yearly basis in November compared with a 2% decline expected by economists, and after a 10.3% fall in October.
The value of exports to China, Japan's biggest trading partner, rose by 4.4% year-on-year. This is the first increase in nine months on the back of increased shipments of car parts.
The volume of exports increased by 7.4% in November from the same period a year ago, reflecting a rise in external demand. In the previous month, the volume decreased by 1.4%.
Exports to the United States, in terms of value, declined by 1.8% year-on-year from an 11.2% fall in October. An increase in car shipments helped to slow down the overall decline in exports to the US.
Imports declined by an annual 8.8% compared with the median estimate of a 12.6% fall due to the decrease in imports of pharmaceuticals, oil and liquefied natural gas.
The trade balance reached a surplus of 152.5 billion yen ($1.29 billion), compared with the median estimate of a surplus of 227.4 billion yen.
"The weak yen helped a lot, but volumes show there is a genuine recovery in exports," said Shuji Tonouchi, a senior market economist at Mitsubishi UFJ Morgan Stanley Securities. "There could be a slight moderation in exports after the year-end shopping season. However, the BOJ will view this data in a positive light," he said.
