Japan"s exports in October increased by 3.1% compared to the previous year, rebounding from a low in September. This growth exceeded economists" expectations of a 2.2% rise, following a decline of 1.7% in the previous month.

Notably, exports to the Middle East saw a significant increase of 35.4%, contributing to the overall growth. On the other hand, imports had a modest increase of 0.4%, defying predictions of a 0.3% decrease. As a result, Japan"s trade deficit widened to 461.2 billion yen ($2.98 billion), surpassing the anticipated 360.4 billion yen and up from September"s revised figure of 294.1 billion yen.

Market analysts, including Daniel Hurley from T. Rowe Price, emphasize the importance of monitoring U.S. trade policies under President-elect Donald Trump, particularly regarding tariffs. Hurley warns that any escalation in U.S.-China trade tensions could have a negative impact on global trade and economic growth, posing risks for Japan"s export-driven economy.