Japan's exports soared 14.8% in April from the same month a year earlier, according to Finance Ministry data released Thursday, demonstrating that the country's trade remained robust despite concerns over oil and gas supplies due to the war in Iran.
Strong Export Growth Driven by Semiconductors
Exports were stronger than expected, rising for the eighth consecutive month as shipments of semiconductors surged nearly 42% by value from the previous year. Booming demand for computer chips and other infrastructure needed to power artificial intelligence has yielded a windfall for many high-tech Asian manufacturers.
Higher exports of medical products, paper goods and electrical machinery also contributed to the stronger export performance in April.
Trade Balance Shifts to Surplus
Imports rose 9.7% from a year earlier. The trade balance shifted to a surplus of 301.9 billion yen ($1.9 billion) from a deficit in the same month the year before. Japan recorded a surplus of nearly 643 billion yen in March.
Regional Trade Dynamics
Exports to China rose 15.5% and exports to the U.S. increased 9.5%. Imports from China climbed 15% while those from the U.S. jumped 23%, the data show.
Impact of Iran War on Oil Imports
While overall imports rose, Japan's oil imports fell nearly 50% by value from a year earlier, while imports of liquefied natural gas (LNG) dropped 20%. Supplies have been crimped by the effective closure of the Strait of Hormuz, the main transport route for exports from the Persian Gulf, due to the war in Iran.
Japan imports almost all of its oil, and Prime Minister Sanae Takaichi has sought to offset lower supplies by ordering the release of some national oil reserves. However, shortfalls have pushed prices higher and also impacted the production of oil-related products such as naphtha.
The price of Brent crude, trading at $70 a barrel before the war in Iran, has shot above $100, and a weakening yen has made imports of oil denominated in dollars still more costly for Japan.
