Export growth for October eases Japanese recession fears
Sharp jump in shipments and factory output could lift some of the gloom after data shows the country's surprise fall into recession
Japanese exports grew last month at the fastest pace in eight months, an encouraging sign that global demand could help the country recover from recession and support the central bank's optimistic economic outlook.
The 9.6 per cent annual rise in exports was more than double the 4.5 per cent gain expected by economists in a poll and faster than September's 6.9 per cent increase.
In another sign that the world's third-largest economy is regaining its footing, a private flash survey showed that factory output grew this month at the fastest pace since March.
Policymakers were stunned by data this week that showed the Japanese economy fell into recession as a sales tax increase weighed on consumer spending and business investment. But growing exports and output could help lift some of the gloom surrounding the economy.
"The trade data shows that exports will contribute to growth in the fourth quarter and help recoup some of the weakness we've seen in Japan's domestic demand," said Shuji Tonouchi, a senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
Accelerating exports could also be a positive for Prime Minister Shinzo Abe, who has said he will call an election amid growing doubts about his economic policies.