Japan's exports surged 19.3% year-on-year to a three-month high of JPY 10,929.0 billion in June 2026, accelerating from a 16.8% increase on the prior month and marking the strongest growth since November 2022. It was also the tenth straight month of export growth, surpassing market expectations of an 18.6% gain, supported by a weaker yen and robust demand for AI-related semiconductors and data center equipment despite supply disruptions from the U.S.-Israeli war with Iran. Shipments grew robustly to China (17.6%), the U.S. (13.0%), ASEAN (20.0%), the EU (20.3%), and Vietnam (32.6)%, but fell to the Middle East (-4.2%). Sales rose for all components: transport equipment (14.4%), notably motor vehicles and car; others (27.9%), driven by scientific, optical instrument; electrical machinery (29.4%), boosted by chips and IC; machinery (10.9%), led by semicon machinery; manufactured goods (19.9%), due to non-ferrous metals; and chemicals (11.3%), particularly plastics.