Japan's Ministry of Finance announced on August 20 that exports in July rose 23.2% year-on-year, accelerating for the fifth consecutive month to the fastest pace since October 2022. In particular, exports of electronic components such as semiconductors surged 49.1%, with exports to China and the United States increasing 25.8% and 22%, respectively. However, imports in the same period also rose 27.8% year-on-year, with crude oil import values jumping 87.8%. The trade deficit widened to 634.5 billion yen, marking a deficit for the third consecutive month. The weak yen is pushing up import costs, and a widening trade deficit typically also adds pressure to the exchange rate. The US dollar is still around 158 yen, and the market is watching the Bank of Japan's decision at its September meeting. For information only and does not constitute investment advice