FX.co ★ Japan Exports Rise More than Expected

Japan’s exports climbed 19.3% year-on-year to JPY 10,048.4 billion in August 2026, beating market expectations of 18.2%. This marked the 12th consecutive month of export growth, driven primarily by strong global demand for AI-related chips, even as supply chain risks persisted due to the conflict in the Middle East.

By destination, exports increased to China (20.6%), the U.S. (24.9%), ASEAN (22.3%), the EU (11.0%), and Vietnam (8.8%), but declined to Hong Kong (-20.4%) and the Middle East.

Across product categories, exports rose in all major segments. Electrical machinery led the gains with a 31.5% increase, supported by higher shipments of semiconductors and integrated circuits. This was followed by transport equipment (7.2%), especially motor vehicles and cars, as well as “others” (17.7%), machinery (21.0%), manufactured goods (18.5%), and chemicals (18.5%).