China tensions crushed Japan’s exports in September

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Japan Exports

Bad news for Japan’s export-oriented economy. The latest data shows further deterioration in September, as exports tumbled more than 10% from the same period last year. The drop-off was lead by a 14% decline in trade with China, as jingoistic tensions rose between the two nations thanks to a dispute over islands in the East China Sea. Barclays analysts point out that automotive exports from China to Japan tumbled nearly 45%, worse than the 13.2% decline seen in August. The worst may not be over. Barclays analysts say the effect of the dispute between China and Japan “could be especially pronounced in the data for October onward, making China-bound exports a focus again next month.”