Japan’s exports rose 6.1% year on year in November (vs 3.6% in October, 5.0% market consensus). We believe that finalising the US trade deal and robust global semiconductor demand mainly drove the sharp increase in Japanese exports.
By destination, exports to Asia increased by 4.5%, with notable growth in Taiwan (16.8%), Malaysia (14.3%), and Vietnam (14%), while exports to China fell by 2.4%. Exports to the US and EU also increased sharply by 8.8% and 19.6%, respectively.
By export item, machinery exports increased by 5.1% and electrical machinery by 7.4%. Semiconductor exports rose 13%, mirroring growth seen in other major Asian chipmakers. Semiconductor exports throughout Asia remained robust. Motor vehicle exports fell by 4.1%. Yet shipments to the US increased slightly (1.5%), while exports to the EU remained strong (25.7%).