Market News
Japan’s July exports clock steepest plunge in over four years, dropping by a more than expected 2.6% - cnbc
Key Points
- The fall was sharper than the 2.1% contraction expected by economists polled by Reuters.
- Exports to the U.S. also continued to fall, dropping 10.1% in July.
- While the effects of the 15% tariffs will not show up until the August data, analysts have warned about their impact on the Japanese economy.
Japan’s exports plunged 2.6% in July from a year earlier, their steepest drop since February 2021, as shipments to its two largest markets — the United States and China — declined.
The fall was sharper than the 2.1% contraction forecast in a Reuters poll and compared with a 0.5% decline in June.
Imports to the world’s fourth-largest economy sank 7.5%, less than the 10.4% fall expected.
Exports to the U.S. also continued to fall, dropping 10.1% in July and slightly softer than June’s decline of 11.4%. The U.S. is the largest market for Japanese exports.
Shipments to mainland China — Japan’s second largest export market — declined 3.5% compared to the same month last year, but shipments to Hong Kong spiked 17.7%.
The Nikkei 225 declined 0.9% after the release, while the yen eased to 147.79 per dollar.