TOKYO (MNI) – Japan’s current account balance showed a surplus of
Y1.47 trillion in February on a widening trade balance, up from a
surplus of Y1.14 trillion a year earlier, when the global recession hit
car and electronics makers, the Ministry of Finance said on Thursday.

The February current account surplus came in lower than the
consensus call of a Y1.63 trillion surplus, but it was still up 29.6%
from a year earlier, and followed a surplus of Y899.8 billion in
January this year.

In June 2009, the current account surplus showed its first
year-on-year gain in 16 months, a 144.4% rise to a surplus of Y1.153
trillion.

The balance has been recovering from the record deficit of Y172.8
billion posted in January 2009, which had been the first shortfall in 13
years.

In February this year, the trade balance showed a surplus of Y778.0
billion, more than tripled from a surplus of Y196.9 billion a year
earlier.

Exports jumped a record 47.3% year-on-year to Y4.87 trillion in
February (the largest gain under the current formula dating back to
1986), showing the third straight year-on-year rise after posting the
first year-on-year gain in 15 months in December 2009, when exports rose
11.7%.

The February rise surpassed the previous record growth of +40.6%
marked in January, MOF data showed. Exports have recovered from the
record 50.4% plunge in February 2009.

On a customs-cleared basis from the MOF’s monthly trade data
released last month, the rise in exports was led by automobiles (+105.0%
year-on-year in February), auto parts (+121.7%) and semiconductors
(+69.1%).

Imports increased 31.6% year-on-year to Y4.09 trillion, posting the
second consecutive y/y gain, following +7.1% in January and recovering
from the record 44.9% drop hit in February 2009.

On a customs-cleared basis, the import rise was led by petroleum
(+64.6% y/y in February), refined petroleum products (+127.8%) and
nonferrous metals (+99.4%).

The price of crude oil surged 74.1% from a year earlier to $78.83 a
barrel in February while the Japanese currency appreciated by 2.4% from
a year before to an average Y90.28 to the dollar during the month.

The services account — including transport, travel and financial
services — posted a deficit of Y84.7 billion in February, shrinking
from a deficit of Y127.7 billion a year earlier.

The combined goods and services accounts were in surplus by Y693.4
billion in February, 10 times larger than the surplus of Y69.4 billion
marked a year before.

The income account posted a surplus of Y859.8 billion, down from a
surplus of Y1.10 trillion a year earlier. The net balance for both
direct and portfolio investment incomes shrank from a year before.

tokyo@marketnews.com
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