By Tetsushi Kajimoto TOKYO (Reuters) - Japan's exports rose less than expected in April from a year earlier due to weak demand from Europe and China, highlighting the challenges confronting the world's third-biggest economy as policymakers try to engineer a sustained revival. The 3.8 percent annual increase in exports in April was below the median estimate for a 5.9 percent rise and followed a 1.1 percent increase in the year to March.

BEIJING (Reuters) - Expansion in China's services sector slowed in April, an official survey showed on Friday, in line with slower factory activity and reinforcing views that recovery in the world's second-largest economy remains modest and faces risks. China's official purchasing managers' index(PMI) for the non-manufacturing sector fell to 54.5 in April from 55.6 in March, the National Bureau of Statistics(NBS) said on Friday.

BEIJING, China - China reported stronger April trade but analysts said export data were inflated and its shaky recovery might be weaker than it looks. Exports rose 14.7 per cent over a year earlier, up from March's 10 per cent growth, customs data showed Wednesday. Imports gained 16.8 per cent, up from the previous month's 14.1 per cent. That suggested the world's second-largest economy might be improving after an unexpected decline in growth to 7.7 per cent in the first three months of the year from the previous quarter's 7.9 per cent.

Canada's trade balance turned surprisingly positive in March as a prolonged rise in exports outpaced a spike in imports, a government agency said Thursday. The country's trade balance went from a revised deficit of Can$1.2 billion (US$1.2 billion) in February to a surplus of Can$24 million in March, Statistics Canada said. Analysts had predicted a Can$700 million deficit. Exports, which have been on an upward trend since July 2012, grew to Can$40.5 billion in March.