Surge in chip shipments underpins the foundation of foreign trade! Japan's exports achieve steady growth for 12 consecutive months.

Notice that Japan's export growth slowed slightly in August but remained at a high level, with shipments of semiconductors and chip-making equipment surging. Data released by Japan's Ministry of Finance on Wednesday showed that exports rose 19.3% year-on-year in August, down from a 23.2% increase in July. This was the 12th consecutive month of export growth, while the median forecast of economists had been for an 18.4% increase. Imports rose 28%, compared with economists' previous forecast of 26.3%. The unadjusted trade deficit widened to 1.1 trillion yen, after a revised deficit of 638.3 billion yen ($4.1 billion) in July, marking the fourth consecutive month of deficit. Japan's exports rose for a 12th consecutive month in August Wednesday's report highlighted the impact of market movements on the trade balance. Oil prices remained relatively high in August, with Brent crude averaging about $88 a barrel, while the yen continued to trade near 160 per dollar. The value of Japan's crude oil imports rose about 59%, while volumes edged up 3.6%. Atsushi Takeda, chief economist at Itochu Research Institute, said, "High crude oil prices are pushing up import costs and causing the trade deficit to widen." "With crude oil prices now above $100 a barrel, I think this will continue to push up the trade deficit, making it increasingly difficult for Japan to restore a surplus." Last week, Brent crude rose above $100 a barrel as attacks in the Strait of Hormuz increased and both the United States and Iran positioned themselves for a prolonged war. Since September, the yen has appreciated more than 3% against the dollar, making it the best-performing Asian currency during the period. By destination, exports to the United States rose 24.9%, while exports to China and Europe rose 20.6% and 11%, respectively. Exports of electronic components such as semiconductors drove overall growth, rising 52%. Among these, exports of these products to China more than doubled, while exports of semiconductor manufacturing equipment to the United States and the European Union also rose more than 100%. Auto exports also increased, but at a slower pace than in previous months. The value of Japan's crude oil imports from the United States rose more than 1,000% to 400 billion yen. Imports from the Middle East rose only 3.7% in value, while import volumes from the region plunged about 31%. With the war continuing to disrupt shipping, Japan has been reducing its dependence on Middle Eastern oil and turning to the United States for stable supply. A senior Trump administration official in charge of energy affairs sought to rebut speculation that the United States might ban fuel exports before the midterm elections in order to lower domestic prices. Interior Secretary Doug Burgum said earlier this week, "If we thought banning exports would really lower prices, we would consider doing so, but that is not the case." According to Ministry of Finance data, the average yen exchange rate against the dollar in August was 160.64, down 8.7% from a year earlier. A weaker yen raises the cost of importing raw materials while giving exporters a competitive advantage overseas. Although the yen has since strengthened, it remains far below its 10-year average. In the Tokyo market on Wednesday morning, the yen was trading near 155.18 against the dollar, compared with a 10-year average of 126.55. Economists said the trade outlook remains bright, largely thanks to continued demand for cutting-edge technology. Takeda said, "I believe demand for AI-related products will remain strong, so I expect exports to be supported."