Japan posted a current account surplus in May, though it fell short of market expectations. The trade balance turned to a surplus on strong semiconductor exports, but the services balance swung to a deficit as the number of foreign visitors to Japan declined.
According to Japan's Ministry of Finance on Tuesday, the current account recorded a surplus of 3.9683 trillion yen (about 37.086 trillion won) in May. The figure fell short of the market forecast of 4.1105 trillion yen based on Bloomberg estimates, but the surplus widened from 3.4364 trillion yen a year earlier.
The trade balance's shift to a surplus expanded the overall surplus. The trade balance in May posted a surplus of 6.9 billion yen, an increase of 504 billion yen from a year earlier. Exports rose 14.7% to 9.3602 trillion yen. In particular, exports of electronic parts such as semiconductors surged 61.2% from a year earlier, while automobile exports rose 13.7%, driving the increase in exports.
Imports also rose as raw material prices climbed amid conflict in the Middle East and other factors. Japan's imports in May stood at 9.3533 trillion yen, up 8.1% from a year earlier. Japan's exports have risen for nine consecutive months and imports for four consecutive months.
However, the services balance swung to a deficit as the travel surplus shrank due to a decline in travelers visiting Japan. This is unusual given the strong weak yen, with the average dollar-yen exchange rate for May recorded at 158.34 yen. The number of foreign visitors to Japan fell 3.6%, while the number of Japanese departing overseas rose 4.7%.
Following the announcement, the yen showed a limited impact, rising to 162.40 yen, up 0.30 yen from the previous day's closing price.
