Japan’s September exports rise 16.7%, helped by chip demand
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Solid global investment in AI continued to support exports of semiconductors and related equipment.
PHOTO: ST FILE
- Japan’s exports rose 16.7% in September, the 13th monthly gain, driven by strong demand for semiconductors and AI-related products, according to the Ministry of Finance.
- Exports to the US rose 22.9% and to China 8.6%. Imports rose 18.9%, but slower crude oil arrivals cut the trade deficit to 536.6 billion yen.
- The figures show external demand still supports Japan’s economy, though global uncertainty remains. Markets now watch the Bank of Japan’s October meeting for rate hike clues.
AI generated
TOKYO – Japan’s exports in September rose 16.7% from a year earlier, government data showed on Oct 21, as strong demand for semiconductors and AI-related products offset weakness in other sectors.
The increase marked the 13th consecutive month of gains, following a 19.3% rise in August and falling short of a median market forecast for a 20.1% increase, Ministry of Finance data showed.
Solid global investment in artificial intelligence continued to support exports of semiconductors and related equipment.
Exports have also been supported by corporate efforts to pass on higher costs through prices.
By destination, exports to the United States rose 22.9% in September from a year earlier, while shipments to China increased 8.6%.
Imports in September rose 18.9% from a year earlier, compared with economists’ median forecast for a 19.6% expansion.
Growth in imports slowed from 28% in August as a result of lower crude oil arrivals after tankers rerouted away from the Bab el-Mandeb Strait when Yemen’s Iran-aligned Houthi militia declared a naval blockade against Saudi Arabia, delaying deliveries into Japan.
For October, crude oil procurement is expected to recover to around 100% of the level seen in the same month a year earlier, as tankers travelling via the Suez Canal are expected to arrive, the government has said.
Slower imports helped narrow Japan’s trade deficit to 536.6 billion yen (S$4.33 billion) in September from 1.1 trillion yen in the previous month.
It compared with a forecast for a 181 billion yen deficit.
The data suggests external demand remains supportive of Japan’s economy, although uncertainty over the global outlook continues to cloud prospects for exporters.
The Bank of Japan holds a key policy meeting later in October where it will release fresh quarterly growth and inflation forecasts that markets will scrutinise for clues on the timing of the next interest rate hike. REUTERS