— Japan May Current Account Surplus Y215.1 Bln, -62.6% Y/Y
— Japan May Current Account MNI Fcast: Y490.0 Bln Surplus, -14.7%

TOKYO (MNI) – Japan’s current account surplus shrank at a
faster-than-expected pace in May, hit by continued high purchases of oil
and gas used for thermal power generation as well as a fall in the
income surplus, data from the Ministry of Finance showed on Monday.

But Japan managed to post a current account surplus for the fourth
straight month, led by a recovery in exports.

The current account surplus stood at Y215.1 billion in May, down
62.6% from a year earlier. It was below the median forecast in a MNI
survey for a surplus of Y490.0 billion, or a 14.7% fall.

Japan logged a record high current account deficit of Y437.3
billion in January amid slowing global demand, the high yen and slower
shipments to China during the Lunar New Year holidays.

The income surplus, the largest component of the current account,
fell 11.7% on the year to Y1.27 trillion in May, marking the first
year-on-year decline in two months.

Exports increased 11.3% in May from a year earlier, marking a third
straight rise, following a 11.1% increase in the previous month.

Imports gained 11.1% in May for a 29th straight rise following a
11.2% rise in the previous month.

The services account — including transport, travel and financial
services — posted a deficit of Y92.8 billion in May, compared with a
shortfall of Y19.3 billion a year earlier.

The combined goods and services accounts were in deficit by Y941.0
billion in May, which was larger than a shortfall of Y790.6 billion a
year before.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5408-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]