Official figures show that Japanese exports grew at their slowest pace of the year in October, underlining fears for the country's main engine for growth.
The worse than expected data pointed to growing concerns that Japan's economy faces a slowdown as a strong yen and slowing overseas demand threaten to further weaken exports.
Overseas shipments rose by a slower than expected 7.8% from a year ago, missing market expectations of 10.2% growth, the finance ministry said. It was the slowest export growth since November last year, which saw a 6.3% fall.
The October exports figure compared with 14.3% annual growth in September and a 15.5% annual rise in August.
Japan's economy expanded at an annual rate of 3.9% in the third quarter as car buyers rushed to make the most of expiring subsidies and smokers stocked up ahead of a tax hike.
But analysts warn of a looming payback in the fourth quarter without such one-off factors, amid doubts over the impact fresh stimulus measures planned by the government will have as firms aggressively cuts cost to secure profits.
Japan has reduced its official interest rate to almost zero, has earmarked a 5.1 trillion yen stimulus package and in September intervened in currency markets for the first time in six years to weaken the yen. The currency has been trading at 15-year highs against the dollar, hammering the competitiveness of the crucial export sector.
A strong yen not only makes Japan's growth-driving exports more expensive but erodes companies' overseas profits when repatriated, with many firms considering sending more production overseas as a result.
The country's exports for the month reached 5.72 trillion yen ($68.5 billion), the 11th monthly increase in a row, led by cars and engines, the finance ministry said. Imports also rose 8.7%.
