- Itochu Corp.
Japan posted its largest monthly current account surplus in nine years in March, led by an improved trade balance and robust returns from foreign investments. The excess in the widest measure of the nation's trade came in at 2.98 trillion yen in March, according to data released by the Ministry of Finance, compared with 2.43 trillion yen in February. The country's current account surplus expanded 6.9% year-over-year. The trade surplus climbed 39% to 927.2 billion yen from the previous year, as Japan's import bill declined due to lower global fuel prices. The services surplus also widened as a record number of tourists visited Japan.
However, weakness in exports and domestic demand continue to slow Japan's economic growth, and a stronger Yen is undermining profits at corporate giants including Toyota Motor Corp. and may reduce the money they repatriate to Japan. Since the start of the year the Japanese Yen has gained as much as 12% versus the US Dollar, denting into overseas earnings and undermining the competitiveness of Japanese-made goods. Earlier this week, Japan's Finance Minister Taro Aso tried to jawbone the Yen low by reassuring that the government is ready to "undertake intervention" in currency markets should the Yen climb further.
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