Japan exports sink on weaker trade with China, US

TOKYO (AP) - Japan's exports fell 12% in August from a year earlier as it logged a second straight month of deficits as the toll from trade tensions between its two largest markets deepened.

Exports of machinery, vehicles and chemicals all declined.

Imports also weakened, at the fastest rate in almost three years, suggesting slack demand inside Japan. Shipments to the U.S. slipped 4%, while those to China sank 12%.

Overall, export volumes fell nearly 6% and import volumes also fell by 6% as trade tensions between the U.S. and China and between Japan and South Korea are reverberated across supply chains

A government survey of businesses released Wednesday showed sentiment at its worst since the aftermath of the March 2011 earthquake and tsunami which devastated a swathe of Japan's northeastern coast.