-Junko Nishioka, chief Japan economist at Royal Bank of Scotland Group Plc
Japan's trade gap widened in September though exports increased more than predicted as the Japanese Yen weakened to near the lowest level in six years, the Finance Ministry said. The nation's currency has depreciated 8.3% versus the US Dollar over the past year and experienced the biggest monthly decline in September since January 2013. Overseas shipments surged 6.3% from the previous year in September to 6.38 trillion yen, whereas imports rose 6.2% to 7.34 trillion yen. That translated into a trade deficit of 958.3 billion yen, compared to the 943.2 billion yen gap a year earlier. Cars, steel and ships contributed the most to the jump in exports, with the value of motor vehicle shipments rising 7% on year, iron and steel products up 14%, and ships surged almost 40%. A 21% increase in liquid natural gas imports was the main reason behind the rising inbound shipments, followed by an almost 12% increase in telecommunications equipment. Robust exports would bolster the Japanese economy, which contracted the most in more than five years following Abe's decision to raise the sales tax in April for this first time in 1997. He hiked the levy by 3 percentage points in April, as the government attempts to curb the world's heaviest debt burden. Abe will consider the health of the economy in the third quarter in his decision due by the end of the year whether to proceed with a lift in the sales tax to 10% next October.
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