Japan's yawning trade deficit stokes recession fears

October trade deficit reached 549bn yen.

BBVA reports that this data taken together with the 3Q GDP contraction is starting to cause concerns over a possible Japanese recession.

Here's more from BBVA:

Japan posted a trade deficit of 549bn yen (USD $6.7bn) in October (consensus: -360bn yen), adding to concerns that Japan’s economy may be entering a recession (Japan’s third quarter GDP showed a contraction of -3.5% saar).

For October, Japan's total exports declined by -6.5% y/y (consensus: -4.9% y/y), its fifth straight monthly decline, as shipments to China (Japan's biggest export market) slumped by -11.6% y/y, and exports to Europe declined for a 13th straight month, by -20.1% y/y.

Imports, meanwhile, decreased by less than exports (-1.6% y/y for the month), resulting in the large monthly deficit. The yen finished the day lower (by -0.6%) against the USD, at 82.17/USD, as speculation grows that the Bank of Japan will ease further in December in order to support the economy.