Japan's trade balance fell from a surplus of ¥152.1 billion in June to a deficit of ¥117.6 billion in July, well below expectations of the surplus growing to ¥196.2 billion.

• Exports increased 2.1% MoM but were still down -2.6% YoY, even after the 12.6% MoM increase in exports in June.
• Imports grew at a faster 5.2% MoM pace but were down -7.5% YoY. However, the annual comparison was still better than expectations of -10.4% YoY
• Exports to the US only increased 1.3% MoM and were still lower by -10.1% YoY (after being down -11.4% YoY in June).
• Imports from the US jumped 10.2% MoM, and the annual decline improved to -0.8% YoY in July, up from -2.0% YoY.