TOKYO: Despite rising by 4.2 percent in September, Japan's exports, which declined for four consecutive months up to August, are not expected to sustain the improvement, according to analyst Oxford Economics (OE).
OE anticipates a slowdown in global trade and the effects of US tariffs to kick in going forward. "Higher US tariffs will weigh on exports to the US, while US policy uncertainty will cap export gains of Japanese capital goods in general," OE's latest report states.
The report says Japan's exports to the US declined 13 percent overall, with auto exports down 24 percent. Chip-making machinery dropped a whopping 46 percent.
However, exports to the EU, helped by yen weakness against the euro, grew by 5 percent. Japan had better results in Asia, with exports rising by 9.2 percent year on year.
Exports to China also improved, up 5.8 percent after a 0.5percent decline in August, while exports to the rest of the region saw a 10.7 percent rise.
Nominal imports rose by 3.3 percent after dipping by 5.2 percent in August, and the seasonally adjusted trade deficit widened to 314 billion yen from 171 billion in August.