World News: Japan Posts Trade Deficit as Its Exports to Asia Weaken
TOKYO -- Japan reported an unexpected trade deficit in October as its exports to Asia weakened for the first time in almost seven years, raising the odds of a deeper economic slump in the fourth quarter.</br></br>Exports to China showed their first drop in nearly three and a half years, according to data from the Finance Ministry. Shipments to the U.S. and Europe continued to decline as well.</br></br>Japan's merchandise trade deficit totaled 63.9 billion yen ($659.5 million) during the month, the ministry said. Overall exports fell 7.7% from October last year, their first decline in four months and their biggest drop since a 14.5% slump in December 2001.</br></br>The downturn in exports, coupled with an oil-driven 7.4% rise in the value of imports, pushed the trade balance into the red. It's a bad omen for Japan's export-dependent economy, which has been thrown into recessionby softening overseas demand.</br></br>"The downward momentum in exports is strengthening at an unexpectedly fast pace," said Taro Saito, senior economist at NLI Research Institute.