Japan's 2025 Trade Deficit Slashed In Half Despite Fall In U.S. Exports

Akira Ito
22 Jan, 2026
Tokyo

Japan's indexes advanced on Thursday, halting a five-day losing streak amid improving global risk sentiment. 

The Nikkei 225 Stock Average soared 1.7%, and the broader Topix Index gained 0.8% after Greenland-linked tensions receded. 

The U.S. president said a "framework deal" has been reached between the U.S. and NATO over Greenland, without giving any evidence. 

Markets in Japan rebounded for now in the hopes that the tentative agreement will avoid a wider conflict between the U.S. and the European Union, which could impact global trade. 

Moreover, Japanese bond yields inched lower after the ruling party leaders and government officials talked up the financial outlook and insurance companies stepped up buying. 

Positive sentiment was further supported by a rise in exports for the fifth month in a row in December. 

Overall exports rose 5.1% to 10.4 trillion yen, and imports increased 5.3% to 10.3 trillion yen, driving the trade surplus to 105.7 billion yen, according to the finance ministry.  

For 2025, Japan's imports advanced 0.3% to 113.10 trillion yen, and exports increased to 110.4 trillion yen, driving the trade surplus down 53% to 2.7 trillion yen. 

Japan's trade surplus with the U.S. declined amid sluggish vehicle shipments after the sharp increase in tariffs to 15% from as low as 2.5% a year ago. 

Exports decreased 4.1% to 20.4 trillion yen, driven by an 11.4% fall in value in vehicle shipments. 

The trade surplus declined 12.6% to 7.5 trillion yen after imports advanced 1.6% to 12.9 trillion yen from the world's largest economy.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.7% to 53,688.89, and the broader Topix Index gained 0.8% to 3,617.73. 

Technology stocks led the rebound, and Advantest, Tokyo Electron, and Lasertec gained between 2% and 4%. 

Large banks participated in the market rally, and Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Group gained between 2% and 3%.