Japan’s September exports rebounded after four straight months of decline

Japanese exports ended a four-month decline in September, climbing 4.2% year-on-year, as shipments to Asia showed strong growth, partially offset by lower exports to the U.S.

Exports, however, missed expectations for a 4.6% rise, according to the average estimate in a Reuters poll of economists.

The world’s fourth-largest economy posted a 3.3% annual increase in imports, up from a 5.2% drop in August and beating the 0.6% increase expected by a Reuters poll.

Japan’s exports fell into negative territory as the world’s largest economy grappled with US tariffs, including shipments of automobiles. Tokyo struck a trade deal with Washington in July, lowering tariffs on its exports to the US to 15% from 25% initially proposed by President Donald Trump.

The figures come a day after the country got its first female prime minister in Sane Takaichi, following months of political turmoil following the election defeat of the ruling Liberal Democratic Party led by former prime minister Shigeru Ishiba.

Takaichi’s looser policy stance and massive fiscal stimulus are likely to weaken the yen, making Japan’s exports more competitive and benefiting exporters — the heavyweights on the benchmark. Nikki 225 which hit a record high on Tuesday.

Since she took over the helm of the LDP in September, the market has pushed the price higher in a so-called “Takaichi trade”, pushing the Nikkei to a record high and pushing the yen past the 150 mark.

However, the country’s economy appears to have fared better than expected, with second-quarter GDP revised upwards in September compared to advance estimates.

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