Home/Forex News Round Up/JPY

Japan Posts 4th Current Account Surplus

Share Print 0

Japan posted a current account surplus of 833.4 billion yen in October for the fourth straight month of black ink, as income from foreign investment soared to a record high for the month, outweighing a huge trade deficit, the government said Monday.

Exports surged 11.2 percent from a year earlier to 6,566.9 billion yen with car shipments growing, while imports rose 7.4 percent to 7,333.5 billion yen due partly to rising purchases of communication devices from other nations, bringing the goods trade deficit to 766.6 billion yen, the Finance Ministry said.

The surplus in the primary income account, which reflects how much Japan earns from its foreign investments, jumped 48.3 percent to 2,018.6 billion yen, up for the fourth consecutive month, with the yen’s slide helping increase dividends from foreign direct investment, the ministry said in a preliminary report.

The income surplus was the largest for October since comparative data become available in 1985, it said.

Japan’s current account surplus is expected to widen as a recent downturn in global oil prices may ease the negative impact of energy import expansion triggered by the suspension of nuclear power generation following the March 2011 Fukushima emergency, some analysts said.

The country’s crude oil import costs were down 10.8 percent from the previous year in October, as average oil prices fell 11.3 percent to $100.7 per barrel, the Finance Ministry said.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top