Japan sustains current account surplus for full year

JAPAN’S current account extended its surplus for a full year in January, Ministry of Finance data showed on Friday, as rises in overseas interest rates boosted gains from foreign bond holdings.

The data showed Japan’s current account surplus stood at 438.2 billion yen (S$3.9 billion) in January, compared with economists’ median forecast for a deficit of 330.4 billion yen in a Reuters poll.

It followed 744.3 billion yen of surplus in December.

A breakdown of the data showed exports grew 7.6 per cent year-on-year in January driven by demand for cars, car parts and chip-making equipment while imports fell 12.1 per cent reflecting declines of coal, liquefied natural gas and communications equipment.

Primary income gains, or returns from past direct investment and portfolio investment overseas, saw Japan log a primary income surplus of 2.8516 trillion yen.

In addition, the current account data showed a record gain in travel account due to a boost from inbound tourism. REUTERS