Japanese export drive continues

Demand for electronic products drives Japanese trade

Japan's current account surplus shot up 23.5% in October, from a year earlier, spurred on by strong demand from Asia for electronic products.

The current account - the measure of trade in goods and services - rose to 936bn yen ($7.6bn), the Ministry of Finance said on Wednesday, in-line with analyst's forecasts.

Last month there was a 438% jump in Japan's trade surplus with the rest of Asia to 339.4bn yen.

The ministry said on Wednesday Japan's total exports in October rose 13.9% from a year earlier, led by semiconductors, electronics goods and motor vehicles.

The trade surplus jumped 71.1% year-on-year, but that was largely due to falls after last year's 11 September attacks on the US.

Economic boost

The seventh straight rise in monthly exports, and strong preliminary figures for November, has raised hopes Japan might be cushioned from weak demand from the US.

The Japanese government has also been talking down the yen to boost exports.

Ministry officials said a rise in imports might also indicate a recovery in the Japanese economy.

Japan reported economic expansion of 0.8% from July to September, the third consecutive quarter of growth.

In September the current account surplus fell 6.8%, which was blamed costly aircraft purchases.