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flag Japan’s exports surged 16.8% in January 2026, driven by strong demand from China and Asia, narrowing its trade deficit to $7.5 billion.

flag Japan’s exports rose 16.8% year-on-year in January 2026, the fastest growth in over three years, fueled by strong demand from China, where shipments jumped 32%, and increased exports to Asia and Western Europe. flag Exports to the U.S. declined 5%, while imports fell 2.5% due to a 14.1% drop in energy purchases, narrowing the trade deficit to 1.15 trillion yen ($7.5 billion)—well below forecasts. flag The rebound follows weak 2025 growth, with GDP expanding just 1.1% annually, and is partly attributed to a later Lunar New Year and rising AI-driven demand for semiconductors. flag Analysts caution the surge may be temporary, with expectations of a slowdown in coming months.

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