12 April 2001, 10:24  JAPAN FEB C/ACC SURPLUS LOWER; MONEY SUPPLY UP

The current account surplus in February reportedly fell 8.7%on the year to Y1.35 tln. When adjusted for seasonalvariations, the surplus was Y1.25 tln, up 48% from January.Imports rose 11.5% on the year, while exports rose 1.3%.Meanwhile, money supply as measured by M2+CDs in Marchrose 2.6% on the year. Bank lending in March fell 3.6% on theyear, or 1.8% after adjusting for writeoffs and other specialfactors. The Nikkei closed up 4.39% or 554.66 points at13,174.93, rallying in late trade after Minister of Economic andFiscal Policy Taro Aso reportedly said favourable tax changescould cause more than Y40 tln of funds to flow into the stockmarket.

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