FX.co ★ Japan Export Growth at 4-Month Low

Japan’s exports rose 4.2% year-on-year to JPY 9,571.6 billion in February 2026, a sharp slowdown from the 16.8% surge recorded in January and the weakest expansion since October. The deceleration reflected softer demand from China and the U.S. Even so, exports increased for the sixth consecutive month and comfortably exceeded market expectations for a 1.6% gain.

By destination, shipments grew notably to Hong Kong (32.3%), Taiwan (6.2%), ASEAN economies (5.1%), the European Union (14.0%), India (22.4%), Australia (8.5%), Russia (65.9%), and the Middle East (27.1%). In contrast, exports to China declined 10.9%, while those to South Korea fell 2.5%.

Exports to the United States also weakened, dropping 8.0% after a 5.1% decline in January, as sales of automobiles, auto parts, and pharmaceuticals fell. The downturn underscores the drag from President Trump’s tariffs on a broad range of Japanese goods.

Economists expect the export recovery to remain subdued, given slowing global activity. Heightened tensions in the Middle East and higher oil prices are seen as additional downside risks to Japan’s external sector.