NIPPON


 

Financial assets held by households in Japan as of the end of June stood at a record high of 2,239 trillion yen as the balance of stocks and investment trust funds grew because of higher stock prices, the Bank of Japan said Thursday.

Of the total, shareholdings climbed 4.9 pct from a year before to 294 trillion yen, and investment trusts grew 9 pct to 140 trillion yen, both record highs, partly pushed up by inflows of funds into the new Nippon Individual Savings Account tax exemption program for small-lot investors.

The balance of cash and deposits shrank 0.1 pct to 1,126 trillion yen, the first decline since the end of December 2006, influenced by the spread of cashless payments, increased consumption due to high prices and a shift of funds to investment trusts.

Japanese government bonds held by the BOJ as of the end of June, excluding treasury discount bills, totaled 538 trillion yen, accounting for 50.94 pct of outstanding JGBs. The proportion fell for the seventh consecutive quarter.

The BOJ has been reducing the amount of JGB purchases in stages as part of efforts to normalize monetary policy following years of massive easing.