japan exports rebound in October on demand from Asia

Surge in sales of chipmaking gear to China, medical goods to US reverses Sept decline

TOKYO - Japan's exports picked up more than expected in October as demand from China and the rest of Asia held firm in the face of mounting uncertainties in overseas markets.

Exports rose 3.1 per cent from a year ago, led by strong growth in shipments of chipmaking equipment, especially sales to China, the Ministry of Finance reported on Nov 20.

The return to growth followed the first fall in exports in 10 months in September. The October result outpaced economists' consensus estimate of a 1 per cent gain, and was also supported by shipments of medical goods to the United States.

Imports climbed 0.4 per cent, compared with the 1.9 per cent decline forecast by economists. The trade deficit widened to 461.2 billion yen (S$3.98 billion), from 294.1 billion yen.

The stronger-than-expected growth will stoke hopes that Japan's economy can stay on the recovery path, with trade providing renewed support. While the country's gross domestic product expanded for a second consecutive quarter in the period through September, the pace slowed as net exports weighed on overall results.