Energy imports sharply decreased, and Japan continues to maintain a trade surplus.

Due to strong export momentum and a significant decline in energy imports, Japan unexpectedly achieved a trade surplus for the third consecutive month. The Japanese Ministry of Finance announced on Thursday that the unadjusted trade surplus in April reached 301.9 billion yen, while market analysts had previously estimated a deficit of 44.5 billion yen. In April, Japanese exports increased by 14.8% year-on-year, while imports rose by 9.7% year-on-year. Strong demand for artificial intelligence related products continued to support export sentiment, with chip exports increasing by 44% year-on-year. In terms of regions, exports to Europe increased by 26.9%, exports to China increased by 15.5%, and exports to the US increased by 9.5%. Japan heavily relies on oil imports from the Middle East, and the turmoil in Iran has had a particularly significant impact. The closure of the strategic chokepoint Hormuz Strait has nearly halted oil transportation, leading to a significant increase in global energy prices and inflation. As a result, Japan has greatly reduced its energy imports, with data showing a 64% year-on-year decrease in crude oil imports and a 50% year-on-year decrease in total energy imports. Japan has stated that there is currently no risk of a shortage of crude oil and plans to secure oil supply by opening alternative import channels and using petroleum reserves, but there have been disruptions in the distribution of refined oil products. Earlier this week, Japanese Prime Minister Sanae Takaichi announced the preparation of additional budget measures to alleviate the pressure on people's daily lives, and plans to restart energy subsidies in the coming months.