TOKYO: Japan's exports rose for a ninth straight month in May, data showed on Wednesday, as solid semiconductor-related demand continued to offset a blow from major supply disruptions caused by the U.S.-Israeli war with Iran.
Total exports by value rose 17% year-on-year in May, government data showed, outpacing a median market forecast for a 16.2% increase and following a 14.8% rise in April.
Exports to the United States rose 12.5% in May from a year earlier, while those to China were up 17.9%, the data showed.
The data underscores the resilience of Japan's exports, which have been supported by steady global demand for semiconductor-related goods, even as geopolitical tensions in the Middle East disrupt supply chains and drive up energy costs.
Exports of chip-making equipment and electronic components remained firm, reflecting sustained investment in advanced technologies such as artificial intelligence and data centres.
Imports grew 12.5% in May from a year earlier, compared with market forecasts for a 12.8% increase, with the gains coming despite a plunge in crude oil import volumes, as the closure of the Strait of Hormuz sharply raised the prices of crude and related products.
Crude oil shipments plunged 28.5% in value terms.
As a result, Japan ran a trade deficit of 378.7 billion yen ($2.36 billion) in May, compared with the forecast of a 564.6 billion yen deficit.
Japan, heavily dependent on imported energy, has faced higher costs following disruptions to Middle Eastern supply routes. While the government has sought to diversify crude procurement by securing alternative supplies from outside the Middle East, including from the United States, those efforts have not fully offset the impact.
U.S. and Iranian officials said on Sunday they had agreed on a framework for a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz. ($1 = 160.4100 yen) - Reuters
