- Trade deficits persist as fuel imports outweigh exports
- Weak yen, Ukraine crisis, COVID-19 weigh on external demand
- C/A surplus resilient as investment income offsets trade gap
Investment
Japan's current account surplus widens on large investment gains – Reuters.com
TOKYO, May 12 (Reuters) – Japan’s current account surplus widened in March, finance ministry data showed on Thursday, easing some concerns about the country’s balance of payments as hefty gains in investment incomes more than offset surging fuel costs.
Japan’s current account surplus stood at 2.55 trillion yen ($19.68 billion) in March, the data showed, up 69 billion yen and the second straight month the balance has been in the black, the data showed. It compared with economists’ median forecast for a surplus of 1.75 trillion yen in a Reuters poll.
Higher oil import costs offset gains in investment income, with continuing uncertainty due to the Ukraine crisis and COVID-19 pandemic, data showed on Thursday.
Register now for FREE unlimited access to Reuters.com
The current account data underscored the reliance of Japan’s resource-poor economy on imports of raw materials, which have been boosted by the yen weakening, pushing the trade balance into deficit.
The data also highlights the change in Japan’s economic structure as the country earns hefty returns from its past investments in securities and direct investment overseas, which have replaced trade as the main driver of its current account surplus in recent years.
Many analysts see Japan’s current account surplus persisting for the foreseeable future as long as it is backed by returns on investment overseas.
“It would not surprise me though if the current account swings into the red about 20 years from now,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“Given the possibility that Japan’s ageing population may eventually be drawing on returns from past portfolio investment, we cannot rely on income gains to back the current account surplus forever.”
For the whole of fiscal 2021, Japan ran a current account surplus of 12.6 trillion yen, down 3.6 trillion yen from the previous year, while the trade balance turned to a deficit due to rising fuel costs.
The current account surplus has been shrinking for four fiscal years in a row.
Although a weak yen also helped inflate the cost of imports, its boost to export volumes was not as great as it once was due to an ongoing shift of exporters’ production abroad.
($1 = 129.5900 yen)
Register now for FREE unlimited access to Reuters.com
Reporting by Tetsushi Kajimoto; Editing by Sam Holmes
Our Standards: The Thomson Reuters Trust Principles.
Continue Reading
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
News14 mins ago
‘Error in judgment’: Province probes school board’s $45k Italy trip for $100k of art
News16 mins ago
Credit card fees for small businesses dipping lower as deal set to take effect
News18 mins ago
Quebec nurses union votes in favour of new collective agreement
Investment5 years ago
dynaCERT Inc. Invites You to Join Us at the Vancouver Resource Investment Conference | INN – Investing News Network
Sports5 years ago
AP source: Bears acquiring quarterback Nick Foles from Jaguars – Sportsnet.ca
Media1 year ago
12 Bizarre Things People Did Just To Make Social Media Content
-
Business19 hours agoNetflix’s subscriber growth slows as gains from password-sharing crackdown subside
-
Politics19 hours agoBad weather forecast for B.C. election day as record numbers vote in advance polls
-
News22 hours ago
Champlain CBP Officers Recover Stolen Vehicle
-
News13 hours agoTobacco giants would pay out $32.5B to provinces, smokers in ‘historic’ proposed deal
-
Politics19 hours agoPromise tracker: What the Saskatchewan Party and NDP pledge to do if they win Oct. 28
-
News20 hours agoToronto FC promises change at the club after missing out on the playoffs yet again
-
News13 hours agoHere are the key numbers in the deal proposed by three tobacco giants
-
Business21 hours ago
CB Series – Front Office Pro Series Trade Floor Business Analysis
