TOKYO (Realist English). Japan’s exports rose 4.2% year on year in September, ending a four-month slump as stronger demand from Asia — particularly China — helped offset a sharp drop in shipments to the United States, according to data released Wednesday.
The increase fell slightly short of the 4.6% rise forecast by Reuters. Exports to Asia grew 9.2%, driven by a 5.8% jump in shipments to China, Japan’s largest trading partner. In contrast, exports to the U.S. — Japan’s second-largest partner — plunged 13.3%, reflecting continued weakness in automobile sales, which fell 24.2% by value after a 28.4% drop in August.
Semiconductors were a bright spot, with exports of chips surging 12.6% year on year, helping lift overall trade performance.
The recovery follows a July trade deal between Tokyo and Washington that reduced tariffs on Japanese goods from 25% to 15%, effective August 7. The easing came after months of strain caused by U.S. protectionist measures introduced under President Donald Trump.
Imports also strengthened, rising 3.3% year on year, reversing a 5.2% decline in August and exceeding expectations of 0.6% growth.
Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Banking Corporation, told CNBC that export growth “is not as strong as it appears on the surface,” attributing the rebound partly to a low base effect from last year. He cautioned that ongoing U.S.-China trade tensions could limit momentum.
The release comes just a day after Sanae Takaichi became Japan’s first female prime minister, succeeding Shigeru Ishiba following months of political instability within the ruling Liberal Democratic Party. Her pledge to maintain loose monetary policy and expand fiscal stimulus has weakened the yen — now hovering around ¥150 per U.S. dollar, compared with ¥147 a year earlier — making Japanese goods more competitive abroad.
Investors have dubbed the market surge the “Takaichi trade,” with the benchmark Nikkei 225 hitting record highs this week. Analysts say Japan’s economy remains resilient, with second-quarter GDP growth revised upward to 0.5% quarter on quarter, well above the initial estimate of 0.3%.
