Japanese investors owns more than it owes. They own over USD $3 Trillion more in foreign assets than foreign investors own in Japanese asset. This large net foreign asset position combined with Japan's large current account surplus make it the world's number one creditor nation. Additionally, Japan's strong net foreign asset position contributes to flows into the yen when markets turn risk averse as Japanese companies and investors repatriate assets. This inflow of cash explains why when the yen appreciates the markets become risk averse, this reinforce the yen's safe haven status. The second reason is the low interest rates. Despite low interest rates to stimulate spending, the inflation to deflation ratio still remains low. Therefore the lack of fluctuations in currency and movement in the stock market makes it a safe haven.
Japanese investors owns more than it owes. They own over USD $3 Trillion more in foreign assets than foreign investors own in Japanese asset. This large net foreign asset position combined with Japan's large current account surplus make it the world's number one creditor nation. Additionally, Japan's strong net foreign asset position contributes to flows into the yen when markets turn risk averse as Japanese companies and investors repatriate assets. This inflow of cash explains why when the yen appreciates the markets become risk averse, this reinforce the yen's safe haven status. The second reason is the low interest rates. Despite low interest rates to stimulate spending, the inflation to deflation ratio still remains low. Therefore the lack of fluctuations in currency and movement in the stock market makes it a safe haven.