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Japan’s Current Account Surplus Quadruples

Japan’s current account surplus expanded in December, buoyed by a trade balance that moved into surplus and spending by a surge of incoming tourists.

The surplus in the current account, the broadest measure of Japan’s trade with the rest of the world, rose fourfold on year to Y960.7 billion, the finance ministry said Monday. That was the 18th consecutive month in the black and was slightly narrower than the Y1.0 trillion surplus forecast by economists surveyed by the Nikkei and The Wall Street Journal.

Japan has marked large current account surpluses in recent months as a weak yen helps boost the value of returns on overseas stock and bond holdings in yen terms. Adding to the surpluses, Japan’s trade balance has improved as lower imported fuel prices bring down the nation’s import bill.

While Japan’s primary income surplus fell 5.1% on year in December to Y1.01 trillion, the amount was the second-largest surplus on record for the month. The trade balance swung to a Y188.7 billion surplus.

Market Watch [1]

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Craig Erlam

Craig Erlam [5]

Senior Market Analyst, UK & EMEA at OANDA [6]
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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