Japan logs record current account surplus of 3.80 tril. yen in Aug.

Ministry of Finance. (Mainichi)

TOKYO (Kyodo) — Japan posted a record current account surplus of 3.80 trillion yen ($25.7 billion) in August, buoyed by the highest-ever returns on foreign investments amid a weak yen, government data showed Tuesday.

The surplus in the current account balance, one of the widest gauges of international trade, expanded 65.8 percent from a year earlier, remaining in the black for the 19th consecutive month, the Finance Ministry said in a preliminary report.

Of the total, primary income, which reflects how much Japan earned from investments overseas, rose 28.5 percent from the year before to 4.70 trillion yen, the highest for a single month, due to increased dividends from offshore subsidiaries in the auto and mining sectors.

Among other key components, the goods trade registered a deficit of 377.9 billion yen, as imports of pharmaceuticals and oil products climbed.

Imports increased 1.3 percent to 8.77 trillion yen, while exports grew 6.2 percent to 8.39 trillion yen.

The services trade deficit shrank 65.2 percent to 104.9 billion yen due to an expansion of the travel surplus, which stood at 404.5 billion yen, a record for August.

A surplus in the travel balance means the amount spent by foreign visitors to Japan exceeded that spent by Japanese tourists abroad.

A weak yen is seen as positive for exporters, who can benefit from increased overseas earnings when repatriated, and for foreign tourists because it becomes cheaper to visit Japan.

The yen averaged 146.23 against the U.S. dollar in August, 1.0 percent weaker than a year before. The Japanese currency also fell 2.1 percent to 161.21 against the euro in the same month, according to the ministry.

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