TOKYO (MNI) – Japan’s current account posted a surplus of Y1.242
trillion in April, up 88.0% from the surplus of Y660.6 billion posted a
year earlier when the economy was crawling out of the global recession,
the Ministry of Finance said on Tuesday.

The March current account balance came in lower than the consensus
call for a Y1.353 trillion surplus. It followed a surplus of Y2.534
trillion in March this year.

In June 2009, the current account surplus showed its first
year-on-year gain in 16 months, a 171.3% rise to a surplus of Y1.279
trillion. The balance has recovered from the record deficit of Y132.7
billion posted in January 2009, which had been the first shortfall in 13
years.

April’s improved current account surplus was led by a much stronger
trade surplus.

The April trade balance showed a surplus of Y859.1 billion, up
414.2% from a surplus of Y167.1 billion a year before. This followed a
record y/y rise of 745.4% to a surplus of Y1.074 trillion in March.

Exports rose 42.7% year on the year to Y5.58 trillion in April. The
pace of y/y gains slowed from +45.4% in March and a record rise of
+47.3% in February (the largest gain under the current formula dating
back to 1986).

It was the fifth straight year-on-year rise in exports after
posting the first y/y gain in 15 months in December 2009, when exports
rose 11.8%.

Exports have recovered from the record 50.5% plunge in February
2009.

Based on customs-cleared data from the MOF’s monthly trade report
released last month, the rise in exports was led by automobiles (+103.0%
y/y in April), auto parts (+61.7%) and semiconductors (+35.5%).

Imports increased 26.1% year-on-year to Y4.72 trillion in April,
posting the fourth consecutive y/y gain after +22.0% in March and
recovering from the record 44.9% drop hit in February 2009.

On a customs-cleared basis, the import rise was led by petroleum
(+64.4% y/y in April), non-ferrous metals (+103.8%) and liquefied
natural gas (+28.8%).

The price of crude oil surged 68.2% from a year earlier to $79.78 a
barrel in April while the Japanese currency appreciated by 5.7% from a
year before to an average Y93.38 to the dollar during the month.

The services account — including transport, travel and financial
services — posted a deficit of Y425.5 billion in April, compared with a
deficit of Y428.0 billion a year earlier.

The combined goods and services accounts were in surplus by Y433.6
billion in April, compared with a deficit of Y260.9 billion a year
before.

The income account posted a surplus of Y946.0 billion, down from a
surplus of Y1.06 trillion a year earlier. The net balance for direct
investment income fell from a year before while that for portfolio
investment income rose.

tokyo@marketnews.com
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