Japan posted a merchandise trade deficit of 695.3 billion yen in August, the Ministry of Finance said on Wednesday.
That beat forecasts for a shortfall of 1,380 trillion yen following the 628.7 billion yen deficit in July.
Exports were up 5.6 percent on year, shy of expectations for an increase of 10.0 percent and slowing from the 10.2 percent gain in the previous month.
Imports rose an annual 2.3 percent versus forecasts for a jump of 13.4 percent and down from 16.6 percent a month earlier.