Japan's auto exports to the U.S. surge
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Japanese automobile exports to the U.S. have surged this year. They were 50% higher, in yen terms, during August compared with the same month last year — and it was the seventh straight month of double-digit gains.
What's happening: The yen has weakened by nearly 13% against the dollar this year, as the Fed's interest rate hikes helped strengthen the greenback.
- A weaker yen means Japanese exports are cheaper for American buyers.
- Japanese carmakers are enjoying the current situation, with shares of Toyota Motor up 54% this year, Subaru up 47%, and Honda Motor up 76% — in yen terms — beating the 27% gain for the Nikkei 225.
Between the lines: With workers now striking at American carmakers, Japanese auto giants may see an opportunity to make inroads in the U.S.
- Such a push would be helped by the favorable financial tailwinds created by the exchange rate.
Of note: The weak yen hasn't supercharged all exports from Japan. Exports to China fell 11% year over year thanks to the weakening economic conditions in the world's second-largest economy.
Editor's note: This story has been corrected to remove an outdated and incorrect reference to Subaru's name. It is now Subaru Corp., formerly Fuji Heavy Industries.
