Overview
- Japan’s trade picture came into focus after Wednesday’s government report showed March exports up 11.7% and imports up 10.9%, leaving a ¥667 billion surplus that missed forecasts.
- Shipments were uneven by market, with exports to China up 17.7% and to the United States up 3.4% as sales to the Middle East fell 45.9%.
- A closure around the Strait of Hormuz has choked energy shipments, lifting oil costs for Japan and contributing to shortages of naphtha that have led dozens of companies to announce order stoppages.
- Higher export prices and demand tied to data centers kept export values firm even as logistics strains and input costs rose.
- The Bank of Japan is expected to hold rates next week as a weak yen and pricier energy add inflation pressure for households and manufacturers.