Japan’s exports rose for the third consecutive month in November, with a 6.1% year-on-year increase in total exports. Shipments to the U.S. rebounded by 8.8%, while those to China fell by 2.4%. Imports grew by 1.3%, resulting in a trade surplus of 322.3 billion yen in November.

Despite a third-quarter economic slump due to U.S. tariffs, analysts expect Japan’s growth to rebound. Japanese exporters absorbed tariff costs to stay competitive, aided by a weaker yen. A trade agreement with the U.S. in September lowered tariffs on imports from Japan, boosting sentiment. Business sentiment among Japanese manufacturers is at a four-year high.

With concerns over tariffs easing, the Bank of Japan is expected to raise its short-term policy rate to 0.75% from 0.5% this week. The pace of future rate hikes remains uncertain.

Read more at Yahoo Finance: Japan’s exports expand for third straight month, U.S. shipments rebound