Japan's exports rose by 19.3% in August, slightly easing; exports to the US increased by 24.9%, boosting the overall figure

(1) Data released by Japan's Ministry of Finance on Wednesday shows that Japan's exports in August increased by 19.3% year-on-year, lower than July’s 23.2% growth but higher than economists’ median forecast of 18.4%. (2) Imports rose by 28% year-on-year, exceeding economists’ estimate of 26.3%. The unadjusted trade deficit widened to 1.1 trillion yen, with July’s revised deficit at 638.3 billion yen, marking the fourth consecutive month of trade deficits. (3) The report highlights the impact of market volatility on the trade balance. In August, oil prices remained relatively high, with Brent crude averaging about $88 per barrel; the yen exchange rate continued to fluctuate around 160 yen to the US dollar, pushing up Japan’s crude oil import costs. (4) A surge in attacks in the Strait of Hormuz and ongoing tensions between the US and Iran drove Brent crude prices above $100 per barrel last week. (5) Since September, the yen has appreciated by over 3% against the US dollar, making it the best-performing Asian currency during the period. (6) By export destination, exports to the US grew by 24.9%, exports to China grew by 20.6%, and exports to Europe grew by 11%.