The deficit was 53.4bn yen ($440m; £283m) - lower than 825.5bn yen a
year ago, and below expectations of 318.9bn yen. There was a surplus in
March.
Exports in the world's third largest economy rose 8% from a
year ago - up for the eighth month - but imports fell by 4.2%, well
above the 1.5% forecast.
The Nikkei was up 0.7% to 20,413.77.
That
marks the seventh consecutive rise for the benchmark index, which is on
its longest winning streak since December. It has gained 4.3% in the
period.
Investors were expecting the deficit, but sentiment was boosted by the fact that the shortfall was much lower than anticipated.
Shares
of Japan Tobacco were up 1.1% after local reports that Suntory Beverage
& Food would buy its beverage vending machine business for 150bn
yen. The firm had announced in February that it was getting out of the
beverage industry.
China leads gains
Chinese shares hit another seven-year high with the Shanghai Composite up 2.4% to 4,768.98 - leading the region's gains.
Infrastructure
and transport stocks boosted the benchmark index after Beijing said it
was seeking private funding for over $300bn (£193bn) worth of public
projects.
The Hong Kong market was closed for a public holiday.
In Australia, the S&P/ASX 200 ended higher by 1% to 5,721.5.
Shares
of miner Sirius Resources jumped more than 21% after fellow miner
Independence Group launched a $1.4bn bid to take it over and create a
diverse base metals and gold mining group.
Meanwhile, markets in South Korea were closed for Buddha's birthday holiday.
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