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Japan Reports Record Exports and Imports for July as Energy Costs Climb
Japan's exports surged 23.2% in July to a record 11.5 trillion yen, the Finance Ministry reported Thursday, driven by robust demand for semiconductor-related products and a weaker yen.
Elevated oil prices pushed imports to a record 12.1 trillion yen, up 27.8% from a year earlier, as inflationary pressures fed through supply chains and compressed margins.
Semiconductor equipment shipments jumped 49.1% by value, reflecting artificial intelligence demand, while exports to China and the United States climbed 25.8% and 22% respectively.
Japan recorded a trade deficit of 634.5 billion yen in July, as Middle East conflict disruptions at the Strait of Hormuz continue to constrain energy procurement.
Resilient exports support the Bank of Japan's case to normalize monetary policy, with the central bank set to raise rates as soon as September amid persistent wholesale inflation.