Japan Balance of Payments March Update

Japan's March current account surplus rose 30% yoy to ¥4.68 tn, driven by a record primary income surplus from corporate repatriation. April also saw record-breaking foreign purchases of Japanese equities totaling nearly ¥10 tn.

Key Takeaways

• 1.Japan's current account surplus for March reached ¥4.68 tn, a nearly 30% increase year-on-year, significantly exceeding forecasts.
• 2.The primary income surplus hit a record high due to increased repatriation of funds from overseas subsidiaries to domestic parent companies at the fiscal year-end.
• 3.Foreign investment in Japanese equities saw extreme volatility, moving from record selling in March to record high buying of nearly ¥10 tn in April.

Table of Contents

• KEY NUMBERS
• Inbound spending by foreign visitors remains positive yoy.
• Primary Income Receipts Hit Record High on Repatriation from Overseas Subsidiaries; Bond Interest Payments Also Increase.
• Domestic Investors Buy Back Half of March's Foreign Bond Sales in April; Foreign Investors' Purchases of Japanese Equities in April Reach Record High of Nearly ¥10 tn
• The Japan Economics Team
• Disclosure Appendix

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