Japan’s Surplus Expands to $21 Billion in August

Japan’s current account surplus expanded to 2.38 trillion yen ($21 billion) in August, the highest on record for the month, lifted by income from foreign investments and a bigger trade surplus, government data showed Tuesday.

The surplus in the primary income account, which reflects how much Japan earns from foreign investments, rose 13.0 percent from a year ago to 2.24 trillion yen, the Finance Ministry said in a preliminary report.

Japan ran a current account surplus for the 38th straight month in August. The yen’s depreciation against the dollar was one of the factors boosting income from foreign investment, a ministry official said.

“Japanese companies are stepping up overseas investment and the yen is relatively soft (against the dollar)…in that situation, primary income tends to get a boost,” said Hidenobu Tokuda, senior economist at the Mizuho Research Institute.

The dollar averaged 109.91 yen in August, higher than 101.27 yen a year ago, while the euro traded at 129.84 yen, up from 113.54 yen.

Among other key components in the current account, goods trade registered a surplus of 318.7 billion yen, up 46.2 percent.

via Mainichi

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