Unexpected increase in Japan's exports

Japan’s exports grew by nearly 12 percent in January, led by higher shipments of vehicles, auto parts and machinery. Economists had expected 9.5 percent. Japan’s exports grew more than expected in January, providing a much-needed boost to the economy and keeping the door open for the Bank of Japan as it moves to end its negative interest rate policy. Exports rose 11.9 percent in January from a year earlier, beating economists’ forecast of a 9.5 percent increase, Japan’s Finance Ministry reported on Wednesday. Imports fell for a 10th month, down 9.6 percent, driven by declines in coal and liquefied natural gas. Exports totaled 7.3 trillion yen ($48 billion), the second month in a row, according to a preliminary report by Japan’s Finance Ministry. The rise in exports, a month after a revised 9.7% increase in December, is a positive sign for Japan after the economy unexpectedly slipped into recession in the final quarter of 2023 due to sluggish domestic spending. Evidence of relatively stable external demand is likely to support market views that the BOJ may continue to normalize monetary policy, as many economists expect by April.