Japan's current account swings back to black on overseas investment

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TOKYO : Japan's current account swung to a surplus in February, reflecting hefty returns on securities investments and easing some concerns about any weakening of the country's purchasing power, after the previous month's record deficit.The current account surplus stood at 2.1972 trillion yen ($16.59 bil

TOKYO : Japan's current account swung to a surplus in February, reflecting hefty returns on securities investments and easing some concerns about any weakening of the country's purchasing power, after the previous month's record deficit.

In February, a weak yen and rises in global interest rates helped drive the amount of primary income gains from Japanese investments overseas to a record amount, a MOF official said. "As a weak yen and commodity price hikes run their course, imports will be on decline, which will cause trade deficits to narrow," said Kenta Maruyama, economist at Mitsubishi UFJ Research & Consulting.

That reflected the trend in which the country increasingly earns income from capital parked abroad rather than sales of goods and services.

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