Japanese household assets reach record high as equity and bond holdings surge

Data released by the Bank of Japan show that Japanese households amassed a record amount of financial assets by the close of June, spurred by rising share prices and greater participation in equity markets. Holdings of equities and investment trusts expanded sharply, and demand for Japanese government bonds rose as interest rates increased. The central bank’s recent decision to raise its key policy rate to a 31-year high is part of a broader normalization effort after years of ultra-loose policy.

At the same time, household debt reached a new high, driven by higher borrowing for homes and credit cards, while cash and deposit balances grew only slightly, lowering their proportion of total assets. The figures suggest a continuing transformation in Japanese saving habits, with more households turning to tax-advantaged accounts like NISA for investment.