Semiconductor shipments surge! Japan’s exports in April grow by 14.8%, far exceeding expectations

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Japan's exports rebounded strongly driven by robust semiconductor demand, with April growth hitting the fastest pace this year and far exceeding market expectations, providing a new supporting signal for Japan’s economy.

According to data released by the Japanese government on Thursday, Japan’s exports in April rose 14.8% year-on-year, well above the Reuters survey expectation of 9.3%, marking the fastest growth since January. Among this, semiconductor shipments soared 41.6% year-on-year, becoming the main driving force behind the surge in exports.

After the data release, the yen strengthened slightly against the dollar, at 158.88. This export performance corroborates the GDP data published on Tuesday—Japan’s economy expanded 0.5% quarter-on-quarter in Q1, with an annualized growth rate of 2.1%. Net exports remain one of the main growth engines.

Exports Surpass Expectations Across the Board, Semiconductors Lead the Way

Japan’s exports in April grew 14.8% year-on-year, not only the fastest growth this year but also significantly higher than Reuters’ forecast of 9.3%, exceeding expectations by 5.5 percentage points.

The biggest highlight of this export growth comes from semiconductors. Relevant shipments rose 41.6% year-on-year, fully reflecting the export competitiveness of Japan’s semiconductor industry against the backdrop of rising global tech demand.

Looking at trade partners, exports to Japan’s largest trading partner, China, increased 15.5%, while exports to the U.S. rose 9.5%, with both major markets showing positive growth.

On the import front, imports for April grew 9.7% year-on-year, also beating the market expectation of 8.3%. As a result, Japan’s trade deficit narrowed sharply from 643 billion yen in March to 302 billion yen in April, with a notable improvement in the trade account.

Weak Yen: Export Boost and Inflation Concerns Coexist

Despite strong export data, Japan is still facing the dual pressure caused by the continued weakness of the yen. Japanese authorities intervened in the foreign exchange market at the end of April to early May, spending about 10 trillion yen to support the yen’s exchange rate.

While a weak yen certainly helps boost export competitiveness, it also pushes up the prices of imported goods, intensifies imported inflation pressure, and erodes residents’ purchasing power.

It is worth noting that Japan’s core inflation data for April will be released this Friday. Previously, March’s core inflation rate accelerated for the first time in five months, rising to 1.8%, and market concerns about energy prices have continued to grow due to the war in Iran.

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