TOKYO (Kyodo) -- Japan's trade deficit in October shrank 34.4 percent from a year earlier to 461.25 billion yen ($3 billion), as exports rose to a record level for the month with solid demand for chipmaking equipment and pharmaceutical products, government data showed Wednesday.

Japan remained in the red for the fourth straight month, but exports rose 3.1 percent from a year earlier to 9.43 trillion yen, marking the first growth in two months.

Imports increased 0.4 percent to 9.89 trillion yen, rising for the seventh consecutive month, according to the Finance Ministry's preliminary report.

Export growth was led by shipments of semiconductor-manufacturing equipment to China and pharmaceutical products to the United States. Meanwhile, solid demand for personal computers from China contributed to the rise in imports.

Japan's trade deficit is likely to continue for the time being, Kazuma Kishikawa, an economist at Daiwa Institute of Research, said.

The yen was 2.0 percent stronger against the U.S. dollar in October compared with the same month last year, according to the Finance Ministry.

But as the Japanese currency weakened again in November, "its impact on imports is likely to emerge in the next month and the following month," Kishikawa said. A weak yen inflates import costs for Japan but also boosts overseas profits when repatriated.

With China, Japan remained in the red for the 43rd consecutive month, logging a deficit of 781.0 billion yen, up 15.8 percent, as exports rose 1.5 percent to 1.68 trillion yen and imports grew 5.6 percent to 2.46 trillion yen.

"While the Chinese government's stimulus policies are likely to spark demand, a backlash may take place next year" possibly leading to weak China-bound shipments, Kishikawa said.

Japan had a 799.3 billion yen trade surplus with the United States, down 12.2 percent from a year earlier, as exports declined 6.2 percent to 1.81 trillion yen and imports fell 0.7 percent to 1.01 trillion yen.

Japan eked out a trade surplus of 33.61 billion yen with Asia, including China, remaining in the black for the ninth straight month as exports increased 7.6 percent and imports expanded 5.6 percent.

Japan was in the red for the ninth consecutive month with the European Union, recording a trade deficit of 252.50 billion yen as exports fell 11.3 percent and imports rose 3.9 percent.