Asia's Export Decline Led by China, Dims Japan's Growth Prospects

Japan's exports experienced their first monthly decline in over two years, falling 0.3% in July compared to the previous year, due to weaker demand from China and other Asian countries. Exports to Asia plummeted nearly 37%, with exports to China contracting for the eighth consecutive month. Japan's domestic demand also showed no significant improvement, as imports slumped 13.5%. The country swung to a trade deficit of 78.7 billion yen, falling short of expectations. With concerns over faltering global demand and the weakening Japanese yen, the Bank of Japan is unlikely to deviate from its ultra-easy monetary policy.