The balance of Japan's net external assets totaled a record 185.797 trillion yen as of March 31, up 7.5 percent from a year earlier, the Finance Ministry said Friday.

The figure, representing the first rise in three years, secured Japan's position as the world's top net external asset holder for the 14th straight year, the ministry said.

The figure compares with 50.822 trillion yen for Switzerland, which ranks second, and 42.214 trillion yen for third-ranked Hong Kong. The figures for Switzerland and Hong Kong were as of last March 31.

Japan's position as the top net external asset holder underlines the firmness of its economic power, though it also suggests the country remains relatively less attractive to overseas investors, given its prolonged ultraeasy monetary policy, analysts say.

Finance Minister Sadakazu Tanigaki said, however, that the expansion in Japan's net external assets is "basically a result of accumulation of current account surpluses."

"The investment environment in Japan has improved considerably," Tanigaki said.

He said overseas investors made active investments in Japan, which continued to see large fund outflows due to its aggressive investment, mainly in foreign securities.

The balance of net external assets is calculated by subtracting the total amount of loans and various forms of investment in Japan made by nonresident investors from those made overseas by the Japanese public and private sectors, as well as individuals.

The Finance Ministry said the balance of Japan's external assets came to 433.864 trillion yen as of March 31, up 12.5 percent from a year earlier, as Japanese nationals stepped up purchases of foreign bonds.