Containers at a shipping terminal in Yokohama, Japan on Oct. 18, 2021. Japan’s trade deficit surged in September as imports overwhelmed export growth.
Kiyoshi Ota | Bloomberg | Getty Images
Japan’s exports climbed 14.8% in April, the fastest pace since January and solidly beating expectations on a surge in semiconductor shipments.
The figure was sharply higher than the 9.3% expected from Reuters.
Imports increased 9.7% year-on-year, versus an expected 8.3% rise, according to government data. The country’s trade balance narrowed to 301.9 billion yen in April, from 643 billion yen in March.
The rise was powered by a surge in semiconductor shipments, which rose 41.6% year on year.
Total exports to China — Japan’s largest trading partner — were up 15.5%, while exports to the U.S. rose 9.5%.
The yen strengthened marginally against the dollar, trading at 158.88.
GDP data on Tuesday had shown that net exports were still one of Japan’s main economic drivers, with the economy expanding 0.5% quarter on quarter and 2.1% on an annualized basis.
Japan is currently struggling with a weak yen, having spent a reported 10 trillion yen on intervening in the yen at end of April and the start of May. While a weak yen is likely to boost exports, it also causes domestic worries by pushing up imported inflation and weakening purchasing power.
Japanese core inflation data for April are due Friday. The measure accelerated for the first time in five months in March, rising to 1.8% as the Iran war fuels worries around energy prices.
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