Japan's exports grew at their fastest pace since late 2022, beating forecasts in May. This marks the ninth consecutive month of export growth, driven by strong demand for semiconductors and AI-related products. According to ForexLive, the sharper-than-forecast narrowing in the trade deficit, at 378.7 billion yen versus an expected 564.6 billion, may offer modest support to the yen. Despite this, the currency remained little changed following the release. The sustained export growth supports the case for the Bank of Japan (BoJ) to continue its gradual tightening path, with a durable demand floor resistant to geopolitical disruption. Crude oil prices, however, plunged 28.5%, which could impact future trade dynamics.