TOKYO, Japan / ConSynSer / – Japan’s exports rose for a 13th straight month in September, but faster growth in imports left the country with a trade deficit of 536.6 billion yen. Preliminary figures from the Ministry of Finance showed exports up 16.7% year on year at 10.9723 trillion yen. Imports increased 18.9% to 11.5088 trillion yen. Xinhua News Agency put the deficit at about $3.4 billion.
Strong demand for semiconductors and chip-making equipment drove the export gains. Products tied to artificial intelligence also supported shipments, according to Xinhua. September was Japan’s fifth consecutive month of trade deficits, although the gap narrowed sharply from 1.11 trillion yen in August. Import growth eased from 28.0% in August, partly because crude oil arrivals declined.
Energy costs remain a major pressure on the trade balance. Japan imports virtually all of its oil and has depended on access to the Strait of Hormuz, which conflict in the Middle East has disrupted. Importers have had to pay more to obtain shipments via other routes. Brent crude has climbed from around $70 a barrel in February to roughly $110 a barrel.
Record trade values in first fiscal half
Japan’s trade deficit for the April-to-September period reached 2.81 trillion yen, or about $17.8 billion, nearly twice the level of a year earlier. Exports for the half-year rose 18.4% to 63.5 trillion yen, while imports jumped 20.4% to 66.3 trillion yen. Both figures were record highs for Japan, reflecting strong trade activity alongside higher energy prices.
The rise in oil prices is affecting a wide range of industries, including plastic goods and shipping. Exporters, meanwhile, continue to benefit from global demand for chips and related equipment. Japan’s trade values had also reached records in July, when imports outpaced exports. The latest data extend a year of strong but uneven trade performance.
Bank of Japan rate path in focus
A weaker yen continues to raise the cost of imported goods, with the US dollar trading at around 150 yen. The Bank of Japan has been gradually lifting interest rates, partly to support the currency. It increased its benchmark rate to 1.25% from 1.0% last month, a 31-year high. Its policy board meets again next week.
The central bank’s inflation target is about 2%. Analysts say oil prices are unlikely to fall soon, which suggests import bills will stay elevated. The Ministry of Finance’s next monthly release will show whether chip-led export growth can keep pace with higher energy costs. Japan’s trade performance remains closely tied to developments in global energy markets.