Japan Exports Rise More than Expected

Japan's exports rose 19.3% year-on-year to JPY 10,048.4 billion in August 2026, surpassing market consensus of 18.2% lifted by robust demand for AI-related chips and semiconductors. It was the 12th month of growth, despite risks from supply chain disruptions due to the Middle East conflict. Shipments grew to China (20.6%), the U.S. (24.9%), ASEAN (22.3%), the EU (11.0%), and Vietnam (8.8%), while exports fell to Hong Kong (-20.4%) and the Middle East. By category, exports increased across all major components, led by electrical machinery (31.5%), driven by stronger semiconductor and IC shipments. Transport equipment rose 7.2%, mainly on motor vehicles; other exports grew 17.7%, led by scientific and optical instruments. Machinery exports climbed 21.0%, led by semiconductor-making equipment; manufactured goods increased 18.5%, supported by iron and steel products; and chemicals rose 18.5%, largely on plastic materials.

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.