Update: Japan's current account surplus widens

[TOKYO] Japan's current account surplus in August expanded 82.7 per cent from a year earlier thanks to increased returns on foreign investment, official data showed Wednesday.

Japan logged a surplus of 287.1 billion yen (US$2.7 billion) in the current account, the broadest measure of the country's trade with the rest of the world, in August, the finance ministry said.

The trade deficit expanded due to growing imports of fossil fuels while income improved with higher gains from equity and other direct investment, as well as from investment in financial items, data showed.

The current account measures not only trade in goods but also services, tourism and returns on foreign investment.

"The current account surplus rebounded in August, and may rise a touch further in coming months as a result of the fall of the yen against the dollar," Capital Economics said in a note.

The yen has slumped against the dollar since August on expectations of higher interest rates in the United States, inflating overseas Japanese earnings when repatriated. - AFP