Japan's exports up in September; deficit persists

TOKYO (AP) — Japan's trade deficit edged higher in September though exports rose more than expected as the yen weakened to a near six-year low, the Finance Ministry said Wednesday.

Exports jumped 6.9 percent from a year earlier in September to 6.38 trillion yen ($59.6 billion) while imports rose 6.2 percent to 7.34 trillion yen ($68.6 billion). That left a deficit of 958.3 billion yen ($8.96 billion), compared to a shortfall of 943.2 billion yen a year earlier.

Japan's currency dropped to nearly 110 yen to the U.S. dollar in September, potentially helping to make Japanese products cheaper abroad. On Wednesday, it was trading near 107 yen to the dollar.

Economists expect the U.S. economic recovery to give Japan's exports a long-awaited boost — despite a weaker yen, demand had remained weak and the trade deficit has remained a drag on growth, thanks partly to imports of oil and gas to compensate for the country's loss of generating capacity after reactors were idled following the March 2011 disaster at the Fukushima Dai-Ichi nuclear plant.

Still, the strongest growth in September was in trade with China and other Asian countries and the Middle East. Machinery and car exports both rose, while demand for food and fuel pushed imports higher.