"It is hard to consider that Japan will become a deficit in current account in medium term"
- Tatsushi Shikano, a senior economist at Mitsubishi UFJ Morgan Stanley Securities
Japan's current account surplus shrank sharply in 2011 to its smallest value in 15 years, as exports weakened, being disrupted by the March earthquake and the Thai floods and energy imports soared after shutdown of nuclear plants.
"It is hard to consider that Japan will become a deficit in current account in medium term," said Tatsushi Shikano, a senior economist at Mitsubishi UFJ Morgan Stanley Securities in Japan.
"But there is a risk if a yen sharply appreciates and the nation loses global competitiveness, the timing to become deficit country may come sooner than expected."
The Nikkei 225 rose 1.1%, or 98.07 points, to 9,015.59, while the broader Topix advanced 1.24%, or 9.57, to 782.34.
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