Japan's Exports Growth Accelerated In May Amid Yen Weakness and Robust External Demand

Akira Ito
19 Jun, 2024
Tokyo

Market indexes in Tokyo jumped higher for the second day in a row after exports advanced more than expected amid a weak yen and robust external demand. 

Japan's exports rose 13.5% to 8.3 trillion yen, or $52.3 billion, in May, the Ministry of Finance reported Wednesday. 

Inbound shipments, or imports, rose for the second month in a row by 9.5% to 9.45 trillion yen. 

Imports rose at the fastest pace in 16 months and reached a five-month high, indicating rising demand for energy and raw materials in Japan. 

Exports to the U.S. advanced by 23.9%, to China by 17.8%, and to Vietnam by 24.4%, but to India they decreased by 0.5%, to Indonesia by 7.4%, and to Germany by 8.7%. 

Exports rose for the sixth month in a row and rose at the fastest pace since November 2022. 

Higher exports drove the trade deficit to 1.221 trillion yen from 1.382 trillion yen in the same month a year ago. 

But, the trade deficit expanded from the previous month's 465.6 billion yen, after exports growth accelerated from April. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average added 0.02% to 38,491.0, and the Topix index advanced 0.3% to 2,724.33. 

Tech stocks led the market gainers following another surge in the sector in the overnight trading in New York, and Nvidia closed at a new record high, becoming the most valued company in the world. 

Tokyo Electron and Advantest surged more than 4%, but Screen Holdings declined 3% in Wednesday's trading. 

Banks traded mixed amid persistent weakness in the yen, and Sumitomo Mitsui Financial and Mizuho Financial advanced 0.4% and Mitsubishi UFJ advanced 1%. 

Tempus AI declined 16.8% to $30.33 and fell below its $37 public offering price in New York. The company is backed by Softbank. 

The latest export data showed a strong gain in vehicle exports in May, lifting automakers. 

Toyota Motor advanced 1.6% to ¥3,107.0, Honda Motor gained 0.7% to ¥1,681.0, Nissan Motor jumped 2.5% to ¥543.20, and Mitsubishi Motors jumped 9% to ¥455.20. 

Shiseido declined 4.7% to ¥4,681.0, Trend Micro fell 4.6% to ¥6,359.0, and Isetan Mitsukoshi dropped 5.5% to ¥2,888.50.