Japan's trade deficit narrows on slower imports

Japan's trade deficit narrowed in April after the yen strengthened and a sales tax hike dampened demand for imports of consumer goods, AP reported. Costs for imports of oil and gas that account for about a third of the country's imports moderated, reflecting a rise in the yen after a year of decline and decreases in shipments of some fuels. The 808.9 billion yen ($8 billion) deficit in April, according to preliminary figures released Wednesday by the Ministry of Finance, compared with a gap of 877.4 billion yen a year earlier and with a 1.7 trillion yen deficit in March. Japan's exports are improving as the economy emerges from a protracted slump and recoveries gain momentum overseas, but Japanese manufacturers have shifted a large share of their production offshore to cut costs, avoid trade barriers and be closer to fast growing emerging markets.