Japan’s June current account surplus surges 144.4 per cent

Japan's current account surplus in June soared 144.4 per cent to 1.15 trillion yen ($11.86 billion) from a year earlier, the finance ministry said in a preliminary report Monday.

The surplus marks the first increase in 16 months in Japan's current account since February 2008, as imports fell sharply and exports improved moderately amid recovery in the global economy.

A steep fall in imports was the main factor behind the surge in Japan's current account surplus, according to the finance ministry.

The surge in demand from China for Japanese cars, electronics goods and machinery has helped Japan's exports to recover, although exports to US and Europe were still moderate.

As global economy improved, Japan's exports showed signs of improvement, thus increasing manufacturing output.

The balance of trade in goods and services recorded a surplus of 485.9 billion yen ($5 billion), compared with 1.9 billion yen (19.59 million dollars) the previous year, the finance ministry said.