Nov 20. Japan reported a 7.7% contraction in October exports against the year-earlier period, which is a record decline in nearly 7 years. Supplies to the Chinese market dropped for the first time in three years. Exports to Europe, whose economy entered a recession, slumped 17%. Goods deliveries to the United States took a deeper drop (19%). Japanese concerns shipped 15% fewer autos to foreign consumers than a year ago. Japanese stocks are heading south today on fears exporters will report weaker earnings. Since September the yen has firmed 9% against the dollar, which has adversely impacted the financial standing of exporters. October imports climbed 7.4%. Japan’s trade balance deficit amounted to 64 bn yens (USD 670 mln) in October, its GDP slowed 0.4% y-o-y in 3Q 2008 and down to 3.7% in April-June 2008.