The nation's trade surplus increased in February for the first time in 11 months, as exports -- especially to the rest of Asia -- expanded more than imports, the Finance Ministry said Thursday.

Fueled by brisk demand elsewhere in Asia for semiconductors and fax machines, Japan's overall trade surplus surged 26.8 percent to 1.18 trillion yen, according to customs-cleared figures on merchandise trade.

The politically sensitive trade surplus with the United States also soared, by 66 percent to 687.3 billion yen, for the first upturn in three months.

In overall trade, exports rose 15 percent to 4.13 trillion yen, outpacing imports, which posted a 10.9 percent year-on-year increase to 2.95 trillion yen due to higher oil prices.

However, it is premature to say that the shrinking-surplus trend is over, a ministry official said, pointing to surging imports from other parts of Asia and high oil prices.

Exports of electronic parts increased 30.8 percent and scientific optical instruments, such as those used in fax machines, rose 28.1 percent.

Imports of crude oil surged 106.2 percent while liquefied natural gas expanded 67.7 percent. Oil prices averaged 17,443 yen per kiloliter, up 111.8 percent from February 1999.

The yen averaged 107.11 to the dollar, up 6.6 percent from a year earlier. A stronger yen can be a factor in making Japanese goods more expensive abroad and imports to Japan cheaper.

In its trade with the U.S., exports of cars, semiconductors and other products increased 10.7 percent to 1.25 trillion yen. Imports, including aircraft and office equipment, dropped 21.3 percent to 564.6 billion yen.

Iron and steel exports to the U.S., which have been politically sensitive, edged down 0.8 percent. In terms of volume, they fell 5.4 percent, a sign that the fall in exports is coming to an end, the official said.

Exports to the rest of Asia surged 32 percent to 1.58 trillion yen, while imports from the region advanced 19 percent to 1.18 trillion yen. The surge in exports must be a rebound from a year earlier, the official said. The resulting surplus was 94.4 percent higher than 12 months earlier.

With the 15-member European Union, the trade surplus rose 5.8 percent to 369.4 billion yen. Exports, including communications equipment, increased 3.2 percent, while imports such as meat gained 0.6 percent.