Exports declined 2.1% from a year ago on weak demand from China, marking the first drop since August 2014.
Imports plunged by a more-than-expected 13.4%, leading the trade balance to swing to a surplus of 111.5bn yen ($902.5m; £591m).
The benchmark Nikkei 225 index was up 1.6% to 19,957.19 points.
Investors seemed to ignore forecasts that imports would continue to decline on lower commodity prices and weak domestic demand.
They were also looking ahead to the outcome from the end of the Bank of Japan`s two-day policy meeting later in the day.
Rate rise rally
Expectations that the US Federal Reserve was confident enough in the US economy to raise interest rates in December was driving the rally in the rest of Asia.
Chinese shares were up with he Shanghai Composite 0.3% ahead at 3,579.91, while Hong Kong`s Hang Seng index was higher by 1.3% to 22,471.18.
In Australia, the S&P/ASX 200 index was up 1.3% to 5,199.60 points.
South Korea`s benchmark Kospi index was higher by 0.9% to 1,979.62 points despite data that showed producer prices fell for the 15th consecutive month in October.
The producer price index declined 4.5% from a year ago, just off a revised 4.6% fall in September, which was the biggest fall on record.
Japan`s shares up despite downbeat trade data
19 November 2015
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Japanese shares headed higher despite government data showing that exports fell in October on an annual basis for the first time in over a year.
