- Norio Miyagawa, senior economist at Mizuho Research & Consulting Co.
Japanese current account surplus jumped unexpectedly in August, posting a first gain in 18-month period, as earnings on overseas investments rose. According to the Ministry of Finance, Japan's current account rose to 454.7 billion yen ($5.8 billion), up from 436.3 billion yen surplus in the previous year. The 4.2 per cent gain is highly above analysts' expectations of a 2.5 per cent increase.
"The overall trend is that the current account surplus is likely to shrink in the future, because overseas economies are weak and this will pressure exports," said Norio Miyagawa, senior economist at Mizuho Research & Consulting Co.
"Today's figure was a temporary blip in a negative trend," said Takahiro Sekido, a strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. and a former Bank of Japan official. "Japan's income surplus is still countering its negative trade balance. We should maintain a cautious stance on the current account."
The Nikkei 225 Stock Average slumped 1.86 per cent, or 162.78 points, to 8,606.81. The broader Topix Index dropped 1.41 per cent, or 10.24 to 717.44.
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