• Shipments to US continue to fall, though at slower pace in October

ISTANBUL

Japan's exports in October grew 3.6% on an annual basis, beating market expectations, as shipments to Europe and Asia grew significantly, data from the Finance Ministry showed Friday.

The markets had expected Japan's exports to rise 1.1% on an annual basis in October, with the growth following a 4.2% expansion in September.

Exports to the US decreased 3.1%, while shipments to Asia and Western Europe increased 4.2% and 8.8% year over year, respectively, helping to counteract the 2.7% drop in exports to North America.

The biggest Japanese exports to the US by value, automobile shipments, fell 7.5% from a year ago, but the decline was far less severe than the 24.2% decline observed in the previous month.

Semiconductor exports jumped 15.8% year-on-year in October, while Japan's overall auto exports increased 0.4%.

Meanwhile, Japanese imports unexpectedly rose 0.7%, defying expectations of a 0.7% fall.

Japan's economy, which had a difficult third quarter, may be relieved to see better-than-expected export numbers. The nation's gross domestic product shrank by 0.4% on a quarterly basis, with net exports contributing 0.2 percentage points to the decline.

Also, Japan issued consumer inflation data on Friday. For 43 consecutive months, headline inflation has exceeded the Bank of Japan's 2% target.