Japan slipped behind China to be the world's third-largest creditor nation in 2025, despite posting a record high in its overseas assets, Bloomberg News reported Tuesday, citing the finance ministry data.
Japan's net external assets reached an all-time high of 561.8 trillion yen or $3.5 trillion, but China's grew even faster to 636.3 trillion yen, while Germany retained the top spot with 675.5 trillion yen, the news agency reported.
The Finance Ministry said Germany and China's stronger positions stemmed from larger trade-driven current account surpluses, while Japan's net asset growth was restrained by a rise in foreign-held domestic assets, fueled by a 26% Nikkei 225 rally to over 50,000, the publication said.
Japan's overseas assets rose 8.5% to roughly 1,806 trillion yen, driven by increased business investment in the U.S. and Switzerland across finance, insurance, and transport equipment, while liabilities climbed 10.5% to 1,244 trillion yen, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)