Yen weakness and heightened Iranian conflict raise import costs; Japan's trade deficit unexpectedly widened in June.

Due to the weakening of the Japanese yen pushing up import costs, along with the impact of rising oil prices due to the conflict in Iran, Japan's trade deficit unexpectedly widened in June. Data released by the Japanese Ministry of Finance on Wednesday showed that the unadjusted trade deficit expanded from the revised 391.8 billion yen in May to 406.9 billion yen. Analysts had previously expected a deficit of 120 billion yen. Imports in June increased by 25.4% year-on-year, while exports grew by 19.3%.