Japan's September exports rise 16.7%, helped by chip demand
EWJ•Japan's exports rose 16.7% year over year in September, below the 20.1% forecast, while imports increased 18.9%. The trade deficit narrowed to 536.6 billion yen from 1.1 trillion yen in August, but was wider than the 181 billion yen forecast.
1. Exports extend gains
Japan's exports rose 16.7% year over year in September, marking a 13th consecutive month of gains but slowing from August's 19.3% increase and missing the 20.1% forecast. Strong demand for semiconductors and AI-related products supported exports, which rose 22.9% to the United States and 8.6% to China.
2. Imports and trade balance
Imports grew 18.9% year over year, below the 19.6% forecast and slower than August's 28% increase. Lower crude oil arrivals contributed to the slowdown as tankers rerouted away from the Bab el-Mandeb Strait, while Japan's trade deficit narrowed to 536.6 billion yen from 1.1 trillion yen in August, against a forecast of 181 billion yen. The Bank of Japan is scheduled to release fresh growth and inflation forecasts at a policy meeting later this month.
