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Japan’s Ministry of Finance reported that exports climbed 19.3 percent in June from a year earlier to 10,929 billion yen, accelerating from a 16.8 percent increase in May and beating a median economist forecast for 18.6 percent growth. The ministry’s figures show the performance marked the fastest expansion since November 2022 while extending a growth streak now in its 10th month. Semiconductor manufacturing equipment and other AI-linked products figured prominently in the advance, the data indicated.
Imports surged 25.4 percent year on year in June according to the same ministry release, outpacing the 21 percent rise anticipated in a Reuters poll of economists. The resulting trade deficit widened to 406.9 billion yen, or about $2.49 billion, compared with a forecast shortfall of 120 billion yen. Ministry statistics placed the deficit against a backdrop of higher energy costs tied to geopolitical tensions.
The ministry’s breakdown showed exports to the United States rose 13 percent while shipments to China increased 17.6 percent, helping sustain overall momentum. A persistently weak yen enhanced the competitiveness of Japanese goods in overseas markets, the data implied through higher yen-denominated revenues. AI-driven demand for data center components further supported the export figures despite supply chain strains elsewhere.
Disruptions linked to the U.S.-Israeli conflict with Iran, including reported closures affecting the Strait of Hormuz, pushed up energy import costs yet failed to derail the export expansion, according to the ministry’s assessment. The finance ministry noted that import growth reflected both elevated commodity prices and solid domestic demand following government stimulus measures late in 2025. These crosscurrents produced the wider-than-expected trade gap for the month.
Economists polled by Reuters had anticipated somewhat softer readings, yet the ministry’s outturn underscored resilience in key manufacturing sectors. Separate central bank observations have highlighted how the weak yen and rising energy prices complicate monetary policy decisions, with the Bank of Japan expected to hold rates steady in coming meetings. The June trade data adds to a string of indicators the ministry has released this year pointing to external demand as a buffer against domestic cost pressures.
