Japan's exports tumble 10.3%

Blame it on exports to China decling by 14.1% and the recent diplomatic spat between the two.

Accoirding to BBVA Research, Japan's September exports fell by -10.3% y/y (consensus: -9.6% y/y), wth exports to China declining by -14.1% y/y.

Here's more from BBVA Research:

China is Japan's largest export market (accounting for 20% of total exports), and recent diplomatic tensions between the two are undermining trade and investment ties.

Also today, in its quarterly economic report, the BoJ cut its economic assessment for eight out of nine regions (only the Tokoku region was unchanged) citing sluggish growth.

We expect the BoJ will ease monetary policy for a second consecutive month at its Oct 30 meeting by expanding its asset purchasing program.

The weak export data, along with rising expectations of monetary easing, were factors causing a sharp depreciation of the yen today to 79.8/USD, its weakest level since July.