Japan’s trade deficit decreased significantly to JPY 231.8 billion in October 2025 from JPY 499.9 billion in the same month a year earlier, outperforming market estimates of a shortfall of JPY 280 billion. Exports rose 3.6% year-on-year in October to a seven-month high of JPY 9,766.3 billion, marking a second consecutive month of growth and outpacing forecasts for a 1.1% gain, though the pace eased from September’s 4.2% increase. Meanwhile, imports increased by 0.7% to a nine-month top of JPY 9,998.1 billion, pointing to the second consecutive month of growth and beating forecasts of a 0.7% decline.