Japan registers current account surplus in Sep, lending from foreign banks surges

Japan registered a current account surplus during the month of September and lending from foreign banks surged during the period. However, the former remained lower than what markets had initially anticipated.

Japan posted a current account surplus of JPY1.821 trillion in September, data released by the Ministry of Finance showed Wednesday; it was up 25.4 percent on year, lower than expectations of JPY2.020 trillion and down from JPY2.000 trillion in August. Moreover, lending from foreign banks surged 46.3 percent to JPY2.719 trillion after spiking 34.7 percent in September.

The trade surplus came in at JPY642.4 billion, missing market consensus of JPY668.8 billion and up from JPY243.2 billion in the previous month. Exports were down 8.3 percent on year to JPY5.838 trillion following the 9.6 percent contraction to JPY5.301 trillion a month earlier.

Further, imports skidded 17.5 percent to JPY5.196 trillion after tumbling 18.3 percent on year to JPY5.058 trillion in the previous month. The capital account showed a deficit of JPY26.9 billion following the 12.8 percent shortfall in the previous month.

The financial account reflected a surplus of JPY3.153 trillion, up from JPY2.922 trillion in August. Also on Wednesday, the Bank of Japan (BoJ) said that overall bank lending in Japan was up 2.4 percent on year in October, coming in at JPY504.185 trillion. That follows the 2.2 percent gain in September.

Meanwhile, excluding trusts, bank lending again was up an annual 2.4 percent to JPY438.246 trillion. That also follows a 2.2 percent jump in the previous month. Lending from trusts picked up 2.4 percent to JPY65.938 trillion after rising 2.3 percent a month earlier.