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8h ago

Japan's Exports Reach Monthly Record as Chip-Equipment Boom Counters Oil Import Shock

The surge in semiconductor-equipment shipments tied to global AI investment is boosting growth and strengthening arguments for further Bank of Japan policy tightening.

A cargo ship carrying containers is seen at an industrial port within Tokyo Port, Japan August 28, 2025. REUTERS/Issei Kato
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Overview

  • The July trade report, released Thursday, showed exports rose 23.2% year-on-year to a record ¥11.5 trillion as overseas demand strengthened.
  • Shipments of semiconductor equipment jumped 49.1% by value in July, a move analysts link to a wave of AI-driven capital spending for data centers and chip fabs.
  • Imports climbed 27.8% year-on-year in July with petroleum import values soaring 87.8% after disruptions to Middle East shipping raised crude prices.
  • The combination of a strong export beat and higher energy costs left a July trade deficit of ¥634.5 billion, narrower than expected but larger than June's shortfall.
  • Exports helped lift second-quarter GDP growth to 0.7% year-on-year and officials and markets say the trade strength adds weight to the Bank of Japan's case for continued policy normalization.