Japan’s exports rose 16.7% year over year in September, below the 20.1% market estimate, while imports increased 18.9%. The trade deficit narrowed to 536.6 billion yen from 1.1 trillion yen in August.
Exports rose for a 13th consecutive month, following a 19.3% increase in August. Demand for semiconductors and related equipment, including from South Korean chipmakers, supported shipments, while automobile exports to Europe also held up.
Exports to the United States increased 22.9% year over year and shipments to China rose 8.6%. Imports grew 18.9%, slowing from 28% in August as crude oil arrivals declined; the trade deficit was 536.6 billion yen, compared with a market estimate of 181 billion yen.
Daiwa Institute of Research economist Koki Akimoto said AI demand should continue to support exports, while a prolonged Middle East conflict could weigh on global demand through higher energy prices. He also said a slowdown in U.S. AI investment could curb exports by weakening semiconductor-related demand from other Asian economies that supply the United States.
