TOKYO (AFX-ASIA) - The current account surplus widened for the second straight month in October, as the surplus on income from foreign investment rose, even as the trade and services surplus shrank, the finance ministry said. The October current account surplus rose to 865.1 bln yen, from 758.6 bln a year earlier. "The value of exports dropped 9.1 pct year-on-year, the seventh consecutive month of declines, due mainly to a sharp fall in the value of semiconductors, PCs and other office-automation equipment exports," an official said. "Imports declined only 4.7 pct due to a decline in oil prices of 18.7 pct, as well as a weakening in the yen," he said. The income surplus from corporate capital investment and divided income from overseas units rose for the 15th consecutive month. "The September 11 attacks severely affected the services balance, increasing Japan's deficit by 66.5 bln from the previous year due to rising reinsurance premiums, only partly offset by a 39.9 pct fall in travellers leaving Japan." The official said the ministry expects exports to continue to decline, contributing to a continued decline in the trade surplus. "However, the pace of the fall in the surplus is expected to slow," he said. "The income surplus will increase so overall it is difficult to predict whether the current account will rise or fall," he said, adding that the outcome depends on how fast the world economy recovers.