Japan’s exports rose for the fourth consecutive month in December, with a 5.1% increase in total exports by value, driven by strong demand and the yen’s depreciation. Exports to the U.S. fell 11.1%, while those to China increased by 5.6%. Imports also grew by 5.3%, resulting in a trade surplus of 105.7 billion yen.

Despite a decrease in U.S.-bound exports, Japan’s export performance has been supported by the yen’s depreciation and a solid U.S. economy. The impact of U.S. tariffs has been less severe than anticipated, leading to a revision in Japan’s economic growth forecast to 1.1% for the fiscal year.

The Bank of Japan raised its policy rate to 0.75% in December, the highest in 30 years, amid easing trade concerns. The central bank is expected to signal readiness for further rate hikes at its upcoming policy meeting, as recent yen depreciation and potential wage gains keep policymakers vigilant against inflationary pressure.

Read more at Yahoo Finance: Japan’s exports rise for fourth straight month, partly boosted by weaker yen