Japan’s exports jumped 16.8% yoy in January to JPY 9,187B, marking the fastest growth since November 2022. The increase was well above December’s 5.1% yoy rise and exceeded expectations of 12.0%, pointing to a sharp acceleration in external demand at the start of the year.
Shipments to China, Japan’s largest trading partner, surged 32% yoy, accelerating strongly from December’s 5.6% increase despite lingering diplomatic tensions following Prime Minister Sanae Takaichi’s remarks on Taiwan. In contrast, exports to the U.S. fell -5% yoy after an -11.1% drop in December. Transport equipment, accounting for more than 20% of export growth, rose modestly by 0.8% yoy.
Imports declined -2.5% yoy to JPY 10,340B, reversing December’s 5.1% rise and undershooting expectations of a 3.0% increase. As a result, Japan posted a trade deficit of JPY 1,153B.
