Overview
- The Ministry of Finance reported on Monday that Japan's current-account surplus for January–June 2026 widened to ¥17,429.2 billion, a year-on-year increase driven by trade gains and investment income.
- The half-year trade balance moved into a small surplus of ¥742.1 billion as exports rose 12.8% to ¥59,192.9 billion while imports rose 8.4% to ¥58,450.8 billion.
- June bucked the half-year trend with a monthly current-account deficit of ¥923 billion and a trade deficit of ¥135.2 billion because import values surged, led by a sharp rise in crude oil prices to about $117 per barrel.
- Primary income remained strongly positive at ¥20,491.4 billion for H1 and the financial account showed a net asset increase of ¥18,489.3 billion, driven by larger outward direct investment and cross-border securities flows.
- A weaker yen and still-soft travel receipts are changing valuations and putting near-term strain on the services balance and import bills, which could feed into inflation and influence policy attention on external risks.