Japanese Exports Soar on Chip and Car Demand

Japan's export growth accelerated to its fastest pace since October 2022 in July, driven by robust demand for chips and cars. The value of exports rose 23.2 per cent year-over-year, exceeding economists' median forecast of a 20.1 per cent increase.

The weak yen has been a significant factor supporting Japanese businesses, as it boosts the value of shipments and makes their products more competitive in overseas markets. The currency touched its weakest level against the US dollar in 40 years in July, trading at an average 161.83 versus the greenback, 11.2 per cent weaker than a year earlier.

Other key drivers of export growth include electronic components, including semiconductors, which saw shipments increase by about 49 per cent. Passenger cars also rose significantly, with a 21 per cent gain in outbound shipments.