Japan trade gap widens as imports surge, with capex solid for now

Upbeat outlook: People wearing protective masks walk in the rain past a Nikkei 225 index stock board in Tokyo. Trade data shows an improvement in Japan’s business sentiment in August, with a key gauge of corporate capital spending rebounding in June. — AP

TOKYO: Japan’s imports jumped to a record amount in July, boosted by global fuel inflation and a weak yen, outweighing exports and deepening the trade deficit, in a sign of a further worsening in the terms of trade for the export-oriented economy.

The trade data came on the heels of Reuters Tankan, which showed an improvement in Japan’s business sentiment in August, while a key gauge of corporate capital spending rebounded in June from the previous month’s decline.