Japan’s exports rose by 23.2% year-on-year in July, surpassing expectations, with AI demand driving a 49.1% surge in semiconductor equipment exports.

(1) Japan's exports in July grew by 23.2% year-on-year, surpassing the market expectation of 19.9%, marking the fifth consecutive month of acceleration and the fastest growth rate since October 2022. Semiconductor equipment exports soared by 49.1% year-on-year, reflecting continued demand driven by the artificial intelligence boom. (2) Imports grew by 27.8% year-on-year, higher than the expected 26.5%, reaching the highest level since November 2022. Affected by the Iran war which pushed up oil prices, oil import value rose sharply by 87.8% year-on-year. (3) The trade deficit in July was 634.5 billion yen, lower than the expected 680 billion yen, but expanded compared to June's 409.9 billion yen.