Overview
- Japan's exports rose 14.8% year-on-year in April after Thursday's government data showed semiconductor shipments jumped 41.6%, well above market forecasts.
- The April figures produced a 301.9 billion yen trade surplus while total imports climbed 9.7% despite crude oil imports plunging 64%, the steepest drop since 1980.
- Net exports were a key contributor to Q1 growth, which expanded 0.5% quarter-on-quarter, with firms using inventories and strategic oil reserves to offset supply disruptions.
- A weak yen prompted reported government intervention of about 10 trillion yen at the end of April and start of May, leaving households and firms exposed to higher import costs.
- Analysts warn that if Middle East supply disruptions persist, higher energy and input costs could slow demand in energy-intensive industries and undercut future export momentum.