— BOJ: End-Sep Japan Household Assets +0.3% Y/Y At Y1,442 Trln
— BOJ: End-Sep Rise Marks 4th Straight Y/Y Rise
— BOJ: End-Sep Household JGB Holdings -3.9% Y/Y At Y34.08 Trln
— BOJ: Household JGB Holdings Mark 5th Straight Quarter of Y/Y Drop
— BOJ: Non-Japanese JGB Holdings Y58.6 Trln, +6.2% Y/Y
— BOJ: Non-Japanese JGB Holdings Post 1st Y/Y Rise in 8 Qtrs
— BOJ: Household Cash, Deposits Up 1.2% At Y799.9 Trln

TOKYO (MNI) – Japanese households are still parking the bulk of
their money in safe cash and deposits but are also taking a little
investment risk for higher returns by buying securities denominated in
foreign currencies, quarterly Bank of Japan data showed Friday.

The value of financial assets held by Japanese households rose 0.3%
on the year to Y1,441.8 trillion at the end of September, but fell from
the balance of Y1,444.7 trillion at the end of June, according to
preliminary BOJ data.

The 0.3% rise was the fourth consecutive y/y rise following an
unrevised 0.3% rise at the end of June.

The rise in the financial assets held by households was due to the
increase in cash and deposits, according to the data.

In the July-September quarter, the total average monthly cash
earnings per regular employee in Japan rose 0.9% from a year earlier,
the second consecutive y/y rise following +1.3% in April-June.

The BOJ’s preliminary flow of funds data suggests personal spending
is likely to remain solid for the coming months, partly due to the
recent rise in the value of financial assets held by households.

In its monthly economic report for November, the BOJ said: “Private
consumption is expected to pick up again as the decline following the
sharp increase in demand becomes less pronounced.”

The value of cash and deposits held by households at the end of
September rose 1.2% on year to Y799.9 trillion, marking the 15th
consecutive quarter of y/y gains, after rising 1.3% at the end of June,
the data showed.

The data also showed that households increased investment in
riskier assets during the third quarter.

The value of foreign currency denominated bonds held by Japanese
households at the end of September totaled Y9.81 trillion, up 29.6% from
a year earlier, with the pace of growth accelerating sharply from a
revised 14.6% rise at the end of June.

Also, the balance of foreign currency denominated deposits held by
the households at the end of September was at Y5.4 trillion, up 4.6%
from a year earlier and reversing from -0.2% at the end of June.

Meanwhile, the value of shares and other equities held by Japanese
households at the end of September fell 4.6% year on year to Y92.73
trillion, posting the second consecutive y/y drop after falling 4.2% at
the end of June.

The value of investment trusts Japanese households held at the end
of September was down 2.3% y/y at Y50.49 trillion, also posting the
second consecutive y/y fall after falling 0.6% at the end of June.

The outstanding balance of Japanese government bonds held by
households at the end of September was down 3.9% from a year earlier at
Y34.1 trillion, posting the fifth consecutive y/y drop, with the pace of
decline accelerating from a 3.3% fall at the end of June.

The outstanding balance of JGBs held by domestic financial
institutions at the end of September totaled Y582 trillion, up 7.4% from
a year earlier.

The balance of JGBs held by financial institutions accounted for
66.2% of the total of JGBs at the end of September, down from 66.5% at
the end of June and below a record high level of 67.3% marked at the end
of March 2010.

The data also showed that the outstanding balance of Japanese
government debt including short-term paper held by non-residents at the
end of September totaled Y58 trillion, up 6.2% from a year earlier and
marking the first y/y rise in eight quarters.

The balance of JGBs held non-residents accounted for 6.5% of the
total JGBs.

The balance of financial liabilities held by the Japanese
government was at Y1,041.5 trillion, up 6.6% from a year earlier.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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