The Japanese yen started off the trading week lower against multiple currency rivals, driven by the latest economic data that disappointed investors and heightened fears of a recession hitting the worldâs third-largest economy. But Japan is just one of many countries experiencing the fallout of the US-China trade saga that has crippled global financial markets.
According to the Ministry of Finance, exports from Tokyo fell 5.2% from the same time a year ago to $590 billion in September, falling short of the market forecast of a 4% contraction.
This represented the 10th consecutive month of declines as the economy posted tumbling sales in manufactured goods, transport equipment, transportation, chemicals, and electric machinery. Japan witnessed sliding exports to multiple trading partners, including China, South Korea, Thailand, Australia, the US, Singapore, and Hong Kong.
The federal government further reported that imports dipped 1.5% year-on-year to $600 billion last month. The market had penciled in a 2.8% drop, so it was better than expected. But this was offset by a revised 11.9% plunge in August.
Japan confirmed that its sales of mineral fuels, manufactured goods, and transport equipment declined in September. Also, imports from major trading partners, like China, South Korea, the US, and Hong Kong, slid a month ago.
Overall, Japan is facing a trade deficit of $1.13 billion, transitioning from a 1.14 billion surplus at the same time a year ago. This was the third straight month of a trade gap.
On Monday, The Ministry of Economy, Trade, and Industryâs All Industry Activity Index in August was flat at 106.2 points. It has stayed at or above 106 index points for seven of the eight months this year.
The USD/JPY currency pair rose 0.21% to 108.63, from an opening of 108.37, at 19:28 GMT on Monday. The EUR/JPY was unchanged at 121.12.
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