Japan’s exports to China fell sharply last month from a year ago, highlighting the effect on trade of a -territorial dispute between Asia’s two largest economies.

According to yesterday’s preliminary data from the finance ministry, shipments to China from Japan dropped 14.1 per cent in September from a year -earlier, accelerating from a 9.9 per cent fall in August. The figures show that the stand-off over a group of islands in the East China Sea, administered by Japan but also claimed by China and Taiwan, is exacerbating difficulties for exporters already hit by sluggish demand in developed -economies and a persistently strong yen.

Overall, shipments from Japan slid 10.3 per cent in September from a year earlier, knocked by enduring weakness in Europe, resulting in a trade deficit of Y559bn ($7bn), slightly wider than expected. Imports rose 4.1 per cent, as Japan bought more oil and liquefied natural gas to offset lost nuclear capacity.