Japan's May Exports Surge 17% Driven by Semiconductors and Autos

Japan's exports in May rose 17% year‑on‑year, the strongest annual increase since November 2022 and above the 16.2% market forecast. The jump was led by a 61.2% rise in the value of semiconductor shipments and a 16.4% increase in automobile exports. Exports to Japan's top trading partner China grew 17.9%, while sales to the United States rose 12.5%.

Imports also climbed, up 12.5% YoY to the highest level since January 2025, reflecting higher energy and food costs. Exports to the Middle East fell 32% amid logistics pressures from the US‑Iran conflict. Analysts expect continued demand for AI‑related chips but warn that a slowdown in global growth could temper future export expansion, and the Bank of Japan is monitoring the data as it considers monetary‑policy adjustments.