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Japan exports beat forecasts as semiconductor equipment shipments jump

Exports rose 23.2% year on year in July, with semiconductor equipment up 49.1%, while petroleum imports jumped 87.8% as oil prices rose amid the Iran war.

Reported · Written up by our desk · Central Banks

Japan’s exports climbed faster than expected in July, rising 23.2% year on year and beating the 19.9% forecast, marking a fifth straight month of accelerating growth, according to data coverage from Forexlive citing Reuters.

The export gain was led by a 49.1% jump in semiconductor equipment shipments tied to artificial intelligence related demand, supporting a view that Japan’s growth momentum is broadening beyond domestic factors and could help underpin the yen at the margin.

Forexlive also highlighted that the trade backdrop was mixed, with petroleum import values up 87.8% year on year, reflecting higher oil prices linked to the Iran war. Imports rose 27.8% versus an expected 26.5% increase, and the narrower than expected trade deficit adds to the picture of stronger trade momentum overall.

With second quarter GDP growth accelerating to 0.7% year on year, the data is expected to reinforce the case for Japan to maintain a gradual approach to policy normalization, in line with the Bank of Japan’s ongoing debate on timing, Forexlive said.

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