Asia Economy

Japan June current account swings to deficit

Japan's export outlook will improve: Pro

Japan's current account swung to a deficit in June for the first time in five months, government data showed on Friday, due to a decline in earnings on overseas investments.

The deficit stood at 399.1 billion yen ($3.9 billion), against the median estimate of a 324.3 billion yen deficit in a Reuters poll of economists.

In May, the current account balance stood at a surplus of 522.8 billion yen.

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"The yen has been weak for the past 18 months, that's very good. It's now fairly stable and the current level is quite nice for exporters. But we also saw a slowdown in many Japan's markets, for instance shipbuilding LNG tankers which has come down. So I think it takes time and we'll see better export figures coming through the September and December quarters," said Edwin Merner, president at Atlantis Investment Research.

"People were overly optimistic [but] this takes time ... there's a laggard effect," he added.

Read MoreWhat happened to Japan's yen-driven export boom?

The surplus in Japan's income balance fell 37.7 percent in June from a year earlier to 418.2 billion yen due to lower earnings and dividends from overseas investments, the data showed.