— Adds Details From 6th Paragraph
— Japan Oct Current Account Surplus Y562.4 Bln, -62.4% Y/Y
— Japan Oct C/A Surplus MNI Median Forecast Y496.5 Bln, -66.8%
TOKYO (MNI) – Japan’s current account surplus shrank for the eighth
consecutive month in October as exports posted the first decline in
three months amid slowing global growth and the persistent strong yen,
data released by the Ministry of Finance on Thursday showed.
The current account surplus stood at Y562.4 billion in October,
down 62.4% from the surplus of Y1.49 trillion a year earlier.
The figures came in slightly better than the median forecast in a
Market News International survey for a fall of 66.8% to Y496.5 billion.
The income surplus, the largest component of the current account,
rose 20.3% to Y1.12 trillion in October, marking the seventh straight
y/y rise.
Exports fell 2.7% in October from a year earlier, marking the first
fall in three months, while imports increased 21.3%.
Based on the MOF’s customs-cleared trade data for October released
last month, the downturn in exports was led by semiconductors and other
electronics devices (-20.8% y/y) and ships (-32.4%).
Meanwhile, imports of crude oil surged 33.4% and purchases of
liquefied natural gas soared 63.8% in October.
Higher energy costs have been pushing up imports despite the strong
yen, which boosts Japan’s purchasing power.
The yen hit a fresh life-time high of Y75.32 on Oct. 31, prompting
the Bank of Japan to conduct, on behalf of the Ministry of Finance,
yen-selling intervention, the third such operation this year.
The services account — including transport, travel and financial
services — posted a deficit of Y275.4 billion in October, versus the
shortfall of Y257.4 billion a year earlier.
The combined goods and services accounts were in deficit by Y481.6
billion in October, reversing a year-earlier surplus of Y646.3 billion,
tokyo@marketnews.com
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