Japan’s exports increased sharply in September as global semiconductor and artificial-intelligence demand supported manufacturers, but stronger imports left the country’s trade deficit substantially larger than economists expected.
Exports increased 16.7% from a year earlier, according to Japan’s Ministry of Finance, extending their growth streak to 13 consecutive months.
Economists surveyed by Reuters had expected a stronger 20.1% increase.
Imports increased 18.9%, leaving Japan with a September trade deficit of 536.6 billion yen, equivalent to roughly $3.4 billion.
Economists had expected a deficit of approximately 181 billion yen.
The deficit nevertheless narrowed from approximately 1.1 trillion yen in August.
Semiconductor and AI-related demand remains an important source of export strength.
Exports to the United States increased 22.9%, while shipments to China rose 8.6%.
The import side remains more difficult.
Japan depends heavily on imported energy, making its trade balance particularly sensitive to crude-oil prices and disruptions affecting major global supply routes.
The September numbers therefore show two powerful forces operating simultaneously.
AI and semiconductor demand is strengthening Japanese exports, while elevated import costs are absorbing part of that benefit.
That combination also matters for the Bank of Japan.
Higher imported energy costs can increase domestic inflation even while strong external demand supports economic activity, complicating monetary-policy decisions.
Investors will next watch October trade figures, semiconductor shipments, crude-import costs and the Bank of Japan’s updated economic projections.
