Japan's Exports Rise for Third Month on Weaker Yen, Trade Uncertainty
Japan's exports witnessed a modest growth of 2.8% year-over-year in December, marking a third consecutive month of increase. The gain was primarily driven by rising chip-making machinery and semiconductor parts exports. Imports also saw a 1.8% increase, led by calculation machinery and related goods.
The Japanese yen's depreciation played a significant role in boosting exports by making Japanese goods more competitive in international markets. During December, the yen averaged 152.48 per dollar, a 3.8% decline compared to the previous year. This yen weakness made imports of energy and food more expensive.
Notably, Japan's trade balance unexpectedly shifted to a positive ¥130.9 billion ($837 million) surplus for the first time in six months. Regionally, exports to the US declined by 2.1%, while those to China experienced a 3% drop. Exports to Europe rose by 0.5%, and Asia witnessed a 5.8% increase.
Analysts speculate that the export growth may have been influenced by last-minute demand amidst lingering uncertainty over the possible imposition of tariffs under President Donald Trump's second term.