Japan's net foreign assets reached a record high of ¥561 trillion at the end of 2025, according to the Ministry of Finance, marking an increase from the previous year and setting a new all-time high for the country [1]. Despite this growth, Japan was overtaken by China, which reported net foreign assets of approximately ¥580 trillion, moving into second place globally [1]. Germany remains the world's largest holder of net foreign assets [1].
Net foreign assets are calculated by subtracting foreign-held assets in Japan from Japanese-held assets abroad [1]. The Ministry of Finance attributed the increase in Japan's net foreign assets to a rise in overseas investments by Japanese companies and the depreciation of the yen, which boosted the yen-converted value of foreign assets [1].
The trend in Japan's net foreign assets reflects the impact of Japanese corporate investment activities and currency fluctuations within the global economy [1]. The Ministry of Finance noted that future market developments will continue to draw attention, given these ongoing dynamics [1].
CONCLUSION
Japan's net foreign assets have reached a historic peak, but the country has slipped to third place globally as China advances. The increase is driven by robust overseas investment and a weaker yen, with future market trends remaining a focus for investors and policymakers.