Japan's exports rise by 13.4% in July

Chemicals exports led growth with 14.9% rate.

Japan exports grew 13.4% YoY in July up from 9.7% in June, recording the country's seventh month of expansion.

According to UOB, imports growth also climbed by 16.3% and marked 7th month of expansion as well.

Japan, however, posted a smaller trade surplus of US$3.8b (JPY418.8b) after it hit US$4b (JPY439.8b) in June.

Chemicals exports contributed 10.3% to export value and led growth with a 14.9% rate, 1.5 ppt of headline growth.

It was followed by manufactured foods with growth of 9%, machinery with 13.7%, electrical machinery with 11.7%, transport equipment with 11.4%, and others with 21.2%.

China led the top countries for export destinations with 17.6% growth, followed by South Korea with 16.8%, and Singapore with 27.9%.

Exports to US also expanded at a faster pace of 11.5% from 7.1% in June. The US also remained as the largest export destination in July at US$12b (JPY1.319t), against China at US$11b (JPY1.211t).

Exports to Europe eased to 8.9%. Meanwhile, they fell for second straight month for Sweden at -5.4%, while exports to Spain slipped too at -0.7%.