Japan Export Growth at 3-1/2-Year High

Japan’s exports surged 17.0% year-on-year in May 2026, accelerating from 14.8% in the previous month while marking the strongest growth since November 2022 and exceeding market estimates of 16.2%. It was also the ninth straight month of increase, supported by resilient global demand for semiconductors and automobiles despite Middle East tensions disrupting supply chains and lifting energy costs. Shipments grew to China (17.9%), the U.S. (12.5%), ASEAN (20.0%), the EU (14.5%), and Vietnam (33.0)%, but shrank to the Middle East (-33.2%). Sales rose for all components: transport equipment (12.9%), notably motor vehicles and car; electrical machinery (32.4%), boosted by chips and IC; others (16.8%), driven by scientific, optical instrument; machinery (6.7%), led by semicon machinery; manufactured goods (16.8%), due to non-ferrous metals; and chemicals (11.1%), notably plastics.

Japan's exports jumped 14.8% yoy to a near-record high of JPY 10,507.3 billion in April 2026, accelerating from 11.5% growth in March while marking the fastest pace in three months and topping market forecasts of 9.3%. It was also the 8th straight month of increase, reflecting resilient global demand despite supply disruptions caused by the war in Iran. Shipments grew to China (15.5%), the U.S. (9.5%), ASEAN (19.9%), the EU (26.9%), and India (8.9%, but shrank to the Middle East (-55.5%). Sales rose for all components: transport equipment (6.0%), notably motor vehicles and car; electrical machinery (28.6%), boosted by chips and IC; machinery (12.5%), led by semicon machinery; others (18.1%), driven by scientific, optical instruments; manufactured goods (15.3%), due to non-ferrous metals; and chemicals (8.8%), notably plastics. Prolonged disruptions to Middle Eastern supply routes, however, could weigh on exports by slowing global demand, particularly in energy-intensive sectors.

Japan's exports rose 11.7% yoy to a record JPY 11,003.3 billion in March 2026, beating market forecasts of 11% and picking up from February’s 4.0% gain. This marked the seventh straight month of export growth, boosted by stronger shipments to key trading partners including China (17.7%), Hong Kong (7.6%), Taiwan (27.1%), ASEAN (19.7%), the EU (18.2%), and India (8.5%). Sales to the U.S. rose 3.4%, marking the first gain in four months as headwinds linked to tariffs imposed by President Trump eased. In contrast, shipments to Russia fell 9.4%, while exports to the Middle East plunged 45.9%, reflecting disruptions tied to the Iran war. Sales expanded for all components, including transport equipment (3.4%), notably motor vehicles and car; machinery (7.1%), led by semicon machinery; electrical machinery (21.5%), boosted by chips and IC; others (18.1%), driven by scientific, optical instruments; manufactured goods (12.7%), owing to non-ferrous metals; and chemicals, particularly plastics.