Japan's Current Account Swung to Deficit In June, Nikkei 225 Jumped 2%

Akira Ito
10 Aug, 2026
Tokyo

Japan's indexes traded higher on Monday, as investors reviewed the ongoing tensions in the Middle East and the latest economic update. 

The Nikkei 225 Stock Average increased 2%, the broader TOPIX gained 0.7%, and the yen extended its downward march to 158.27 against the U.S. dollar. 

Stocks advanced in Tokyo, tracking gains in Friday's trading in New York after the release of July's nonfarm payrolls. 

U.S. nonfarm payrolls decreased by 23,000 in July, overall jobless rate eased to 4.1%, and the average hourly earnings edged up slightly to $37.62 according to the data released by the U.S. Bureau of Labor Statistics. 

On an annual basis, average hourly earnings in the private sector advanced 3.2%, confirming steady wage inflation. 

The agency sharply lowered job gains in June to 63,000 from 129,000 and in May to 20,000 from 57,000, with these revisions employment in May and June combined is 103,000 lower than previously reported.  

The price of Brent crude oil rose 0.3% to $83.82 a barrel, amid contradictory signals from the U.S. and Iran over the diplomatic efforts to reopen the Strait of Hormuz and end hostilities in the Red Sea. 

On the economic front, Japan's current account balance swung to a deficit in June, as strong exports of AI-related electronics were offset by rising costs of imported fuel and energy products. 

The current account balance swung to a deficit of 923.0 billion yen from a surplus of 1.28 trillion yen a year ago, said the Ministry of Finance on Monday. 

The international account swung to a deficit for the first time since January 2025, as goods exports swung to a deficit of 135.2 billion yen from a surplus of 467.3 billion yen surplus. 

Meanwhile service deficit widened to 228.5 billion yen from 160.6 billion yen, driving the primary income surplus sharply lower to 380.1 billion yen from 1.449 trillion yen a year ago. 

In the first half of June 2026, Japan's current account surplus rose to 17.43 trillion yen compared to 14.23 trillion yen in the same period a year ago.     

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 2% to 66,908.37, and the broader TOPIX added 0.7% to 4,101.70. 

Semiconductor- and AI-linked stocks led the gainers in Tokyo's trading, tracking gains in Friday's surge on Wall Street. 

Tokyo Electron increased 3.7% to ¥56,490.0, Advantest Corp. gained 4.5% to ¥33,840.0, Ibiden Corp. advanced 4.8% to ¥20,030.0, and Fujikura Ltd. soared 9.6% to ¥5,655.0.