Japan's Exports Soared In May and Trade Balance Swung to Deficit

Akira Ito
17 Jun, 2026
Tokyo

Japan's benchmark indexes approached record highs as stronger-than-expected international trade data improved market sentiment. 

The Nikkei 225 Stock Average increased 0.8%, the broader TOPIX advanced 0.7%, and the yen edged lower to 160.25 against the U.S. dollar. 

Japan's goods exports growth accelerated in May, the fastest pace of increase since November 2022, amid solid demand for automobiles and semiconductors. 

Goods exports increased for the ninth consecutive month despite Middle East tensions disrupting supply chains and lifting energy costs, according to a report released by the Ministry of Finance. 

Seasonally unadjusted exports increased 17% to 9.5 trillion yen, imports rose 12.5% to 9.9 trillion yen, driving the trade deficit down by 42.8% to 378.6 billion yen. 

Japan's trade deficit plunged to $2.4 billion, after crude oil imports from the Middle East plunged 57% by volume. 

Japan purchased crude oil at $114.6 per barrel, which represents a 52% increase in price compared to a year ago; meanwhile, imports from the Middle East dropped 37.3% to 445.8 billion yen, and overall oil imports fell 28.5% to 539.2 billion yen. 

Japan's oil purchases from the U.S. surged 24% and stepped up purchases from Malaysia and Brunei. 

The preliminary international trade data highlighted continued interruption of oil-related products, including naptha, a key ingredient used in the manufacture of plastics and packaging materials. 

Shipments to China soared 17.9% to 1.7 billion yen, to the U.S. advanced 12.5% to 1.7 billion yen, to Taiwan jumped 37.7% to 834.3 billion yen, and South Korea gained 22.2% to 599.5 billion yen. 

Transportation equipment sales increased 19.9% to 1.9 trillion yen; electrical machinery rose 18.5% to 1.8 trillion yen; machinery, by 17% to 1.6 trillion yen; manufactured goods, by 11.4% to 1.1 trillion yen; and chemicals, by 10.9% to 1.0 trillion yen. 

Japan recorded its first trade deficit in four months, and the government diversified its import of oil from alternative sources but at a higher cost due to added transportation charges and insurance fees.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.8% to 69,962.73, and the TOPIX added 0.7% to 4,015.24. 

Technology stocks rebounded in Wednesday's trading as investors returned following the release of strong exports data. 

Lasertec increased 13%, Tokyo Electron advanced 2.4%, Advantest Corp. decreased 1%, and Toyota Motor fell 1.3%. 

Honda Motor decreased 1.6%, Nissan Motor fell 0.9%, and Yokohama Rubber eased 1.1%.