Financial assets held by Japanese households as of the end of September grew 4.9% from a year earlier to ¥2.286 quadrillion ($14.7 trillion), hitting a record high for two quarters in a row, Bank of Japan data showed Wednesday.
The balance improved for an 11th straight quarter, reflecting higher stock prices and a rise in the yen value of foreign currency-denominated assets due to a weaker yen.
Shares held by households soared 19.3% to ¥317 trillion. Investment trust funds jumped 21.1% to ¥153 trillion thanks to the new Nippon Individual Savings Account tax exemption program for small-lot investors.
Insurance policies saw a rise of 2.0% to ¥416 trillion, supported by a higher valuation of foreign currency-denominated products.
The balance of cash and deposits edged up 0.5% to ¥1,122 trillion.
Meanwhile, backed by an increase in housing loans, household debt hit a record ¥402 trillion.
Japanese government bonds (JGBs) held by the BOJ, excluding treasury discount bills, totaled ¥522 trillion. The proportion of the central bank’s holdings fell for eight consecutive quarters to 50% because the bank is reducing outright JGB purchases in stages as part of its monetary policy normalization.
Financial assets held by private companies excluding financial institutions marked a record high of ¥1.584 quadrillion, up 8.1%. The rise reflected growth in the balances of shareholdings and foreign direct investment.
AloJapan.com