Japan posts first current account deficit in nearly 1-1/2 years

By Makiko Yamazaki

TOKYO, ‌Aug 10 (Reuters) - ​Japan ​recorded a current account deficit in June for the first time ‌in 17 months, data from the finance ⁠ministry showed on Monday, as robust investment in domestic ‌markets from overseas investors ‌boosted the size of dividend payouts.

The deficit in the current account stood at 92.3 ​billion yen ($584.51 million) in June, versus economists' median forecast for a surplus of ⁠1.51 trillion yen in a Reuters poll and against a ​surplus of 1.28 trillion yen a year earlier.

The net balance for primary income ​from securities and direct ‌investment, usually the biggest driver of Japan's current account surplus, shrank ⁠by 74% to 380 billion yen due to larger dividend payouts from Japanese companies to foreign ⁠investors.

Surging oil import costs also led to a trade ​deficit in June and helped turn the current account into a deficit.

For the first half of this ‌year, however, Japan's current account surplus rose by 22.5% to a ‌record 17.4 trillion yen, thanks to a ⁠trade surplus driven by ‌strong exports of ​semiconductors for AI dater centers.

($1 = 157.9100 yen)

(Reporting by Makiko YamazakiEditing by Shri ‌Navaratnam)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Fire near Indonesia's Mount Bromo extinguished after 550 hectares burnt, but new hotspots emerge
• Australian shares dip as Westpac weighs on banks ahead of RBA decision
• UK's jobs market shows signs of stabilisation, REC/KPMG say