Demand for Japanese cars has helped boost exports

Exports rose 15.1% to 6.57 trillion yen (�26.7bn) from a year earlier, pushing Japan's trade surplus to 389.5bn yen, the Ministry of Finance said.

The data helped ease fears that slower US economic growth would hurt key sectors such as electronics and cars.

However, the figures make an interest rate rise more likely, analysts said.

Japan - which raised rates to 0.5% in February - is now expected to increase borrowing costs to 0.75% as early as August amid increasing signs that the economy is continuing to recover.

Record high

The trade figures sent Japanese shares to a seven year record with the lower yen boosting exporting firms.

The Nikkei index climbed 28.62 points, or 0.16% to 18,240.30 points.

While exports rose 15.1%, imports added 15.5% to hit 6.176 trillion yen.

Car sales to Europe and steel sales to Thailand helped boost the surplus, according to the government.

But evidence of the slower US economy was still a concern.

The trade surplus with the US fell 12.9% in May from a year earlier to 543.7bn yen, dropping for the second month in a row.