Tokyo

Japan'simports and exports set records in July and soaring energy costs and a weak yen helped extend a trade deficit for a third month, government data showed.

Japan's trade deficit totalled 634.5 billion yen ($4 billion) last month, marking the third straight month of red ink, the Finance Ministry said in a preliminary report Thursday.

Imports surged 27.8 per cent from the same month a year ago to a seasonally adjusted 12.15 trillion yen ($77 billion).

The war in Iran has sent crude oil prices soaring. Japan, which imports almost all its oil, previously relieved heavily on oil imports from the Middle East through the Strait of Hormuz, which remains effectively closed. Exports rose 23.2 per cent to 11.51 trillion yen ($73 billion), as auto exports to the US and other nations remained strong. Shipments of semiconductors and other electronic devices were also healthy. Japan's exports have now grown every month for almost a year.

By value, both imports and exports rose to the highest levels in July, since comparable data became available in January 1979, according to the ministry. Japan has been seeking alternative sources for energy imports, including the US. Japan's central bank has intervened to prop up the currency, but that has had little lasting impact. The yen's weakness is related to larger causes like Japan's socioeconomic clout, which has been weakening, analysts say.