Japan's exports contracted less than expected in August as shipments to its largest trading region — Asia — rebounded, though the overall growth stayed negative for a fourth straight month.

Japanese shipments fell 0.1% year on year, compared to a 2.6% fall in July. This was much softer than the 1.9% contraction expected by economists polled by Reuters.

The country's imports declined at a softer pace of 5.2%, compared to the 7.4% contraction in July, but more than the 4.2% fall expected in the Reuters poll.

Exports from the world's fourth-largest economy have fallen into negative territory as the country grapples U.S. tariffs and a slowdown from the front-loading of exports at the start of the year.

Japan is also looking at political uncertainty as Prime Minister Shigeru Ishiba is set

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