Japan posts $19.8 billion current account surplus

Japan logged a current account surplus of 2.10 trillion yen (19.82 billion U.S. dollars) in August, the Finance Ministry said in a report on Thursday. The latest reading marks the 74th successive month the current account has been in surplus, the report showed.

The ministry also said in its preliminary report that the country had a goods trade surplus of 413.2 billion yen (124.45 million U.S. dollars), while services trade stood at a deficit of 316.6 billion yen (2.98 billion U.S. dollars) in the reporting period.Japan's primary income, which reflects returns on overseas made investments, logged a surplus of 2.25 trillion yen (21.21 billion U.S. dollars), the ministry also said.

Japan's current account surplus is one of the broadest measure of its trade with the rest of the world. The data is keenly eyed by the Bank of Japan (BOJ) and the finance ministry ahead of new potential policy changes or monetary easing or tapering measures.

In Japan, the current account surplus increases the nation's net foreign assets by the corresponding amount, and a current account deficit does the reverse. Both the Japanese government and private payments are included in the calculation and it is called the current account because goods and services are generally consumed in the current period.

Meanwhile, markets mostly rose Thursday as investors tracked a Wall Street rally, with investors increasingly confident Joe Biden and the Democratic Party will win the presidency and both houses of Congress, paving the way for a huge new stimulus.

Donald Trump's decision to break off talks for a second rescue package gave global traders a massive jolt this week, but his call soon after for targeted helpincluding $1,200 handouts for Americans and help for small businesses-lifted hopes for some sort of deal.

But analysts said that while the end of the talks came as a blow, there are broad expectations that a new spending bill will be passed at some point as the economic recovery stutters and the coronavirus sees fresh spikes around the world.

"The market realises that whoever wins, more than likely Biden now, there is going to be significant stimulus and additional infrastructure spending," Andy Brenner, head of international fixed income at National Alliance, said in a note.

And the odds on a Biden win are shortening, with opinion polls putting him well ahead nationally and enjoying leads in battleground states such as Florida, where polling website FiveThirtyEight says Trump is losing the crucial senior vote. A Biden victory and Democrats taking the Senate and House is also being priced into markets, observers said, as traders grow increasingly optimistic for a bigger rescue plan than what was being discussed before talks were curtailed Tuesday.

The party had initially proposed a stimulus of more than $3 trillion before lowering it earlier this year. All three major Wall Street indexes ended with gains of close to two percent. Asia mostly followed suit. Tokyo rose one percent, while Sydney, Mumbai, Manila and Taipei added more than one percent. Seoul, Bangkok and Jakarta were also up.

Wellington jumped 1.8 percent after the New Zealand central bank indicated it could unveil fresh economy-boosting measures.