Financial assets held by households in Japan reached a record high for the sixth consecutive quarter, according to the Bank of Japan. As of the end of June, these assets rose by 4.6% from the previous year to ¥2,212 trillion. The increase was primarily driven by higher stock prices, which led to growth in shareholdings and investment trusts. Shareholdings saw a significant rise of 15.6% to ¥301 trillion, while investment trusts climbed 27.1% to ¥128 trillion.
The balance of cash and deposits also experienced a modest expansion of 0.8%, reaching ¥1,127 trillion. Insurance policies increased slightly by 0.6% to ¥384 trillion due to the weakening yen, which boosted foreign currency-denominated policies.
On the other hand, Japanese government bonds (JGBs) held by the Bank of Japan decreased for the third consecutive quarter and now account for 53.21% of total JGB holdings excluding treasury discount bills.
Looking at nonfinancial companies’ financial assets, they grew significantly as well—reaching a record high with an increase of 11.9% to ¥1,559 trillion.
It is worth noting that as part of its efforts to normalize monetary policy, the Bank of Japan has been reducing its outright purchases of JGBs since August; therefore it is expected that their holdings will continue shrinking in future quarters.
this data indicates that household financial assets in Japan have continued their upward trend due to favorable market conditions and solid stock performance.
