Japan Household Assets: Ideas Later.

Japan household assets hit record 2,519 tril. yen on rising stocks

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TOKYO (Kyodo) -- Financial assets held by households in Japan rose to a record 2,519 trillion yen ($16 trillion) at the end of June, up 11.0 percent from a year earlier, lifted by rising stock prices, the Bank of Japan said Thursday.

By type of asset, households held 486 trillion yen in equities, up 47.0 percent, while investment trusts surged 36.8 percent to 193 trillion yen.

Investment flows have remained strong as more households take advantage of a tax exemption program for private investors, known as NISA.

Holdings of debt securities increased 15.5 percent to 38 trillion yen as rising interest rates prompted more purchases of Japanese government bonds issued for individual investors.

The Bank of Japan raised its key policy rate from 0.75 percent to a 31-year high of 1.0 percent in June, its first increase this year, before leaving it unchanged in July. The central bank is expected to lift the rate again to 1.25 percent at its two-day policy meeting through Friday, as it continues to normalize monetary policy amid persistent inflation.

Household liabilities rose 4.1 percent to a record 416 trillion yen, reflecting increased housing loans and credit card use.

Cash and deposits edged up 0.5 percent to 1,132 trillion yen, but their share of household assets declined.

Preliminary data for the April-June quarter also showed that the central bank held 46.7 percent of outstanding government bonds at the end of June. The balance stood at 470 trillion yen.

The proportion of government bonds held by the BOJ has been declining as the central bank scales back purchases in stages.

Article source:  https://mainichi.jp/english/articles/20260917/p2g/00m/0bu/028000c