The rise reflected an increase in the number of Japanese companies operating in the United States and brisk merger and acquisition activities there.

The balance surged about 2.9 times in the past decade, compared with the 18,600.4 billion yen at the end of 2006.

Investment in the United States may expand further, in view of US President Donald Trump's calls for businesses to increase production in his country.

At the end of 2016, Japan's net international investment position, or the balance of assets owned by the government, private companies and individuals minus that of investment from overseas, rose 2.9 percent to 349,112 billion yen, up for the first time in two years.

Japan topped the world rankings by the NIIP, an indicator showing a country's earnings power overseas, for the 26th consecutive year. It was followed by China, at 210,302.7 billion yen, and Germany, at 209,923.4 billion yen.

Total overseas assets owned by Japan increased 5 percent to a record high of 997,771 billion yen.

The growth can be attributed to an increase of M&As and a shift of investment from domestic to foreign bonds amid ultralow interest rates in Japan following the introduction of the Bank of Japan's negative interest policy, Finance Ministry officials said. (Jiji Press)