Investing.com– Japan’s trade balance unexpectedly improved in November on support from stronger-than-expected exports, as demand in the U.S. and China improved and as a softer yen also helped.
Trade balance was a deficit of 117.6 billion yen ($770 million), government data showed on Wednesday. The reading was stronger than expectations for a deficit of 688.9 billion yen, and also improved from October’s deficit of 462.1 billion yen.
The improved trade balance was driven chiefly by stronger-than-expected exports, which rose 3.8% year-on-year in November against expectations of 2.8%. Growth also picked up from the 3.1% seen in the prior month.
Stronger exports were driven by improved demand in Japan’s biggest trading partners, the U.S. and China. Chinese demand in particular improved as Beijing rolled out a slew of stimulus measures over the past two months.
A softer yen also boosted exports, as the USDJPY pair rose sharply in November, briefly hitting an over three-month high.
But local demand remained weak, with Japanese imports shrinking 3.8% y-o-y, compared to expectations they would rise 1%.
While private consumption has remained steady on strength in Japanese wages, capital spending has slowed sharply as businesses fret over an uncertain economic outlook.
