Japan Exports Stay Elevated as U.S. Shipments Drive Growth

Japan's export growth eased slightly in August but remained elevated, with shipments to the United States driving overall gains. According to Sina Finance, Japan's Ministry of Finance said exports rose 19.3% from a year earlier, below July's 23.2% increase but above economists' median forecast of 18.4%. Imports climbed 28%, exceeding economists' estimate of 26.3%. The unadjusted trade deficit widened to 1.1 trillion yen, while July's revised deficit was 638.3 billion yen, marking a fourth straight month of deficits. The report said market volatility affected trade balances. Average Brent crude prices were about $88 a barrel in August, and the yen continued to fluctuate near 160 per dollar, lifting Japan's crude import bill. Brent crude prices topped $100 a barrel last week amid more attacks in the Strait of Hormuz and continued tensions between the United States and Iran. Year to date in September, the yen has strengthened more than 3% against the dollar, making it the best-performing Asian currency over the period. Exports to the United States rose 24.9%, exports to China increased 20.6%, and exports to Europe gained 11%.