Japan May Exports Jump 17% YoY, Reinforcing BoJ Rate Hike Path

Japan's May trade data released on June 17 showed exports surging 17% year-over-year, the fastest pace since late 2022, driven by a 61.2% spike in semiconductor shipments. This follows April's stronger-than-expected core machinery orders, which rose 8.7% month-over-month, signaling robust business investment and external demand. The narrower trade deficit of ¥378.7 billion, alongside rising imports and falling oil values, supports the Bank of Japan's recent 25 basis point hike to 1.0% and gradual tightening outlook, with positive implications for corporate earnings and the Japan 225.