Japanese exports decline by more than expected in May

Japan's trade with the rest of the world was weaker than expected in May, with exports to China, Europe and the US all flagging.

Exports shrank for an eight consecutive month, falling by 11.3% year-on-year to reach 509 trn yen, according to figures from the Ministry of Finance.

Economists had been expecting a drop of 10.0%.

Shipments to the US declined by 10.7%, while those to the European Union slipped 4% and those headed towards China fell 14.9%.

Imports fell even faster, retreating by 13.8% over the year to 5.13trn yen and leaving a 40.7bn yen trade deficit in their wake.

Compounding Japanese exporters' woes, the country's currency had strengthened by 15% against the dollar year-to-date.