Tokyo - Japan's trade surplus shrank 7.6 per cent in May to 365.6 billion yen (3.39 billion dollars) from a year before, the Finance Ministry said Wednesday.

Japan's exports grew 3.7 per cent to 6.81 trillion yen, and imports increased 4.4 per cent to 6.44 trillion yen, the ministry said in a preliminary report.

Exports to the United States dropped 9.5 per cent to 1.18 trillion yen, and imports declined 8.4 per cent to 699.7 billion.

With the European Union, Japan's exports dipped 1.1 per cent to 960.7 billion yen, and imports also decreased 8.1 per cent to 617.4 billion yen.

Japan's exports with the rest of Asia rose 8.1 per cent to 3.49 trillion yen, while imports slipped 3.8 per cent to 2.59 trillion yen.

With China, Japan posted a trade deficit of 37 billion yen.

Exports to China grew 12.3 per cent to 1.16 trillion yen, but imports fell 4 per cent to 1.2 trillion yen.

Trade data are measured on a customs-cleared basis before adjustments for seasonal factors. (dpa)