Japan Exports Notch Fresh Peak

Japan’s exports rose 23.2% year-on-year to a new record JPY 11,511.8 billion in July 2026, marking the strongest growth since October 2022 and exceeding market expectations of 19.9%. The increase followed a 19.3% rise in June, extending the growth streak to 11 straight months. Export growth was supported by a weaker yen and robust demand for AI-related semiconductors, despite risks of supply-chain disruptions stemming from the Middle East conflict. Shipments grew strongly to China (25.8%), the U.S. (22.0%), ASEAN (27.8%), the EU (19.1%), Vietnam (26.3%) and the Middle East (4.1%), while exports to Hong Kong fell (-7.9%). By category, exports rose across all major components, led by electrical machinery (29.4%), supported by stronger shipments of semiconductors and IC, followed by chemicals (22.9%), manufactured goods (20.5%), transport equipment (20.7%), machinery (18.4%) and other goods (19.7%). Within transport equipment, motor vehicle exports increased 19.5%.

Japan's exports surged 19.3% year-on-year to a three-month high of JPY 10,929.0 billion in June 2026, accelerating from a marginally revised 16.8% increase in the prior month and marking the strongest growth since November 2022. It was also the tenth straight month of export growth, surpassing market expectations of an 18.6% gain, supported by a weaker yen and robust demand for AI-related semiconductors and data center equipment despite supply disruptions from the U.S.-Israeli war with Iran. Shipments grew robustly to China (17.6%), the U.S. (13.0%), ASEAN (20.0%), the EU (20.3%), and Vietnam (32.6)%, but fell to the Middle East (-4.2%). Sales rose for all components: transport equipment (14.4%), notably motor vehicles and car; others (27.9%), driven by scientific, optical instrument; electrical machinery (29.4%), boosted by chips and IC; machinery (10.9%), led by semicon machinery; manufactured goods (19.9%), due to non-ferrous metals; and chemicals (11.3%), particularly plastics.

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.