Japan's exports post biggest drop in about four years in July

Total exports from Japan dropped 2.6% year-on-year in July in value terms, the biggest monthly drop since February 2021, when exports fell 4.5 per cent

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Japan's exports posted the biggest monthly drop in about four years in July, government data showed on Wednesday, as the impact of US tariffs intensified.

Total exports from Japan dropped 2.6 per cent year-on-year in July in value terms, the biggest monthly drop since February 2021, when exports fell 4.5 per cent.

It was larger than a median market forecast for a 2.1 per cent decrease and marks a third straight month of decline after a 0.5 per cent drop in June.

Exports to the United States in July fell 10.1 per cent from a year earlier.

Japanese stocks attracted the largest weekly foreign investment in over four months in the week of August 16, fuelling a record-setting market rally on prospects of a US rate cut, while strong domestic economic growth data also boosted sentiment.

Foreigners snapped up a net 1.16 trillion yen ($7.87 billion) worth of Japanese stocks in their most robust weekly purchase since April 5, data from Japan's Ministry of Finance showed on Thursday.

The Nikkei 225 Index, which has so far rallied nearly 398 since hitting a 1-1/2-year low of 30,792.74 on April 7, gained 3.738 last week. The index hit an all-time high of 43,876.42 on Tuesday, but has since come off the record levels due to a decline in technology stocks.