Japan's October exports increase unexpectedly, recovering from a 43-month low.

• In October, Japan's exports increased by 3.1% compared to the previous year, reversing the 1.7% decline seen in September and surpassing the predicted 2.2% rise forecasted by economists surveyed by Reuters.
• The rise in imports to Asia's second largest economy was 0.4%, higher than the expected 0.3% fall from the Reuters poll.

In October, Japan's exports increased by 3.1% compared to the previous year, recovering from a 43-month low in September.

The climb exceeded economists' expectations of a 2.2% increase, as it was a turnaround from the 1.7% decline in September.

The Middle East region experienced the highest growth in Japanese exports, with a 35.4% increase compared to the previous year, according to government data.

The GDP of Asia's second largest economy increased by 0.4%, contrary to the forecast of a 0.3% decline from the Reuters poll.

Japan's trade deficit increased to 461.2 billion yen ($2.98 billion), exceeding the Reuters poll predictions of 360.4 billion and surpassing the September-revised figure of 294.1 billion yen.

Daniel Hurley, a global equities portfolio specialist at T. Rowe Price, stated in a Nov. 19 note that the crucial aspect to track for Japan equities is U.S. President-elect Donald Trump's plans regarding tariffs and trade ties with partners.

The biggest risk for an open and exporting economy like Japan's is tariffs, according to him, while also noting that the country has a very close relationship with the U.S., particularly with Trump.

Any increase in tensions between the U.S. and China regarding tariffs and trade will negatively affect global trade and global growth. As an open and cyclical economy, Japan will be affected by any decline in global trade and the global economy.