China, Japan, trade surpluses surge

China on Wednesday posted a larger-than-forecast $27.1bn October trade surplus, a day before G20 leaders including US and Chinese presidents Barack Obama and Hu Jintao meet in Seoul to discuss global imbalances in spending and capital flows, reports Bloomberg. China’s report followed Tuesday’s news that Japan recorded a 24% annual increase in its September current account surplus. The FT noted that the unexpectedly strong rise to Y1,960bn ($24.25bn) in September could increase scrutiny at the G20 summit of Japan’s role in international imbalances. Tokyo has voiced opposition to a US call for the G20 to limit current account surpluses and deficits to 4% of GDP, with Yoshihiko Noda, finance minister, stressing on Tuesday that each country had “its own circumstances”.