Japan households amass record financial assets as Covid-19 crimps spending

Financial assets held by the corporate sector were up 6.2% at a record 1,275 trillion yen, of which nearly a quarter was in cash and deposits, according to the quarterly fund-flow data.

TOKYO: Japanese households' financial assets hit a fresh record near 2 quadrillion yen last year, half of which was in cash and bank deposits, in a sign the coronavirus pandemic encouraged them to save rather than spend.

The data underscores the challenge policymakers face in firing up consumption and averting a return to deflation, as the lingering pain from the COVID-19 crisis keep companies from raising wages and prices.