MNI BRIEF: Japan April Exports Rise; Car Exports Drop

Japan’s exports rose for a seventh consecutive month in April, climbing 2.0% year-on-year, although the pace slowed from March’s 4.0% increase, data from the Ministry of Finance showed Wednesday. 

The rise was supported by continued strength in shipments of semiconductors, which grew 13.2%, though automobile exports declined 5.8%, reversing from a 7.1% increase the previous month.

Imports declined 2.2% in April, the first drop in two months, following a 1.8% rise in March, driving a trade deficit of JPY115.8 billion, the first since January, after posting a JPY559.4 billion surplus in March.

Exports to China, Japan’s largest trading partner, fell 0.6% in April, marking the second straight decline after a 4.8% drop in March, amid continued signs of economic slowdown.

Shipments to the U.S. also declined 1.8%, the first contraction in four months, following a 3.1% rise in March. Exports of automobiles to the U.S. dropped 4.8% after a 4.1% increase the previous month, reflecting a pullback following front-loaded shipments in March.

Bank of Japan officials are monitoring how exports have evolved since May, particularly in light of new U.S. tariffs. (See MNI POLICY: Export Uncertainty Dampens BOJ's Hike Appetite)