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Japan recorded a larger-than-expected trade surplus in April, supported by a sharp rise in exports and steady demand from key markets including the United States and China. According to data released Thursday by Japan’s Ministry of Finance, the country posted a trade surplus of 301.9 billion yen ($1.90 billion), outperforming market forecasts that had predicted a 29.7 billion yen deficit. However, the figure was lower than March’s 643.0 billion yen surplus.
The biggest contributor to the positive trade balance was Japan’s export growth, which climbed 14.8% year-on-year in April. The increase significantly exceeded analyst expectations of 9.3% and accelerated from the 11.5% growth recorded in March. Strong overseas demand for Japanese automobiles, plastics, chemicals, and capital machinery played a key role in boosting export performance.
Exports to both the U.S. and China continued to rise steadily, highlighting resilient global demand despite ongoing economic uncertainty. A weaker Japanese yen also helped increase the value of exports, making Japanese goods more competitive in international markets.
Meanwhile, imports rose 9.7% in April, surpassing forecasts for an 8.3% gain. The increase was largely driven by growing demand for semiconductors, computing equipment, and electrical machinery as Japan expands data center development and digital infrastructure investments.
Despite ongoing geopolitical tensions in the Middle East and elevated global oil and gas prices, Japan’s petroleum and natural gas imports unexpectedly declined during the month. However, oil imports from the United States increased, suggesting Japan is diversifying its energy supply sources amid concerns over disruptions in the Strait of Hormuz.
The USD/JPY currency pair remained relatively stable following the release of the trade data, while investors continue monitoring Japan’s economic outlook, export performance, inflation trends, and global energy market developments throughout 2026.
