Japanese Companies Hoard Record Cash

As prime minister Abe encourages companies to spend more on wages, corporate cash holdings reach record level, up almost 6 percent from last year.

Japanese companies’ cash holdings rose to a record last quarter, highlighting Prime Minister Shinzo Abe’s struggle to spur the investment and wage increases needed to end a 15-year deflationary malaise.

Corporate holdings of cash and deposits rose to 224 trillion yen ($2.15 trillion), up 5.9 percent from a year earlier, according to a Bank of Japan report released yesterday.

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