Japan July trade surplus nose dives

TOKYO, Aug. 21 (UPI) -- Japan's July trade surplus, hit by record imports, fell to $837 million, down 86.6 percent from the same month of 2007, the government said Thursday.

It was the fifth consecutive month of such decline, the Japanese Finance Ministry said.

Japan's July imports hit a record $69.28 billion, up 18.2 percent from year-ago level, the 10th consecutive month of increase, blamed on soaring energy prices, Kyodo news service reported.

Japanese exports in July totaled $70.11 billion, up 8.1 percent from last year. July exports to China exceeded those to the United States for the first time since World War II, the Finance Ministry said.

A ministry official credited the export growth to shipments of Japanese vehicles to the Middle East and Russia and of light diesel oil to China, Hong Kong and Singapore, the report said.

Regionally, July trade surplus with the United States was down 19 percent to $5.51 billion. It was the 11th consecutive month of decline, blamed largely on lower exports of vehicles and auto parts.

July exports to China rose 16.8 percent to $11.82 billion.