Japan trade data recap - exports rise again in December, but US demand drags

Japan's exports rose for the fourth straight month in December, supported by a weaker yen. However, US shipments plummeted, resulting in a narrowed trade surplus. Export values increased by 5.1% year-on-year, underperforming against the median forecast of 6.1%. This mixed data highlighted a significant 11.1% decline in US-bound exports, while exports to China saw a 5.6% increase. The import growth of 5.3% year-on-year also surpassed expectations, indicating stronger domestic demand and higher input costs. As a result, Japan recorded a trade surplus of ¥105.7 billion, substantially below forecasts of around ¥356.6 billion. Overall, currency depreciation and resilient overseas demand continue to support export performance, despite concerns stemming from US tariffs and slower US demand.