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Japan posted a merchandise trade deficit of 136.329 billion yen in August, the Ministry of Finance said on Wednesday.
That beat forecasts for a shortfall of 365.4 billion yen following the 250.7 billion yen deficit in July.
Exports were down 8.2 percent on year to 6.140 trillion yen, also topping expectations for a decline of 10.9 percent following the 1.5 percent annual drop in the previous month.
Imports sank an annual 12.0 percent versus forecasts for a decline of 11.0 percent after easing 1.2 percent a month earlier.
