Asia demand powers Japan’s exports for sixth month as Iran war risks grow

Japan’s exports rose for a sixth straight month, data showed on Wednesday, pointing to resilient global demand, although industrial supply chain disruptions driven by the Middle East conflict loom as a risk to the world’s fourth-largest economy.

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The oil shock triggered by US-Israeli strikes on Iran has rattled governments and central bankers worried about the hit to economic growth.

In February, however, Japan continued to benefit from strong overseas orders. Total exports by value rose 4.2 percent year-on-year last month, data showed, exceeding a median market forecast for a 1.6 percent increase thanks to solid demand in Asia, although the shipments volume dipped 0.5 percent.

The challenge facing policymakers in Japan, and their counterparts globally, is that the Middle East war has dramatically shifted the risk profile for business, consumers and overall growth.