Japanese Stock Market Sees Record Trading Volumes in 2023

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The Japan
Exchange Group (JPX) released its trading overview for 2023, showing record
activity in the Japanese stock market. In the cash equity market, the annual
trading value for the main floor of domestic common stocks reached 943.7637
trillion yen, an all-time high

According
to the press release from today (Friday), trading was also robust for domestic
ETFs at 57.76 trillion yen, the sixth-highest on record, and J-REITs at 12.9144
trillion yen, the fifth-highest.

The
derivatives market also saw heavy trading, with a total volume at 394,038,423
contracts, the third-highest on record. Total derivatives trading value hit a
new record of 3,538 trillion yen.

Night
session trading made up 37.5% of the total volume of derivatives. Trading volume
specifically for TOPIX futures contracts came in at 26,627,140, the
second-highest ever.

In
December, the monthly derivatives volume was 34,575,752 contracts, while the value
reached 430 trillion yen, the highest December figure. TSE REIT Index futures
set a new monthly volume record of 286,364 contracts.

Analysts
cite the weakening yen, continued economic recovery, and improving corporate
governance as reasons for the heightened investor interest and trading activity
in Japanese stocks. The increased volumes indicate global confidence in the
Tokyo market going into 2024.

JPX is a large financial exchange holding company that operates multiple exchanges in Japan and is one of the top 5 largest exchange operators globally based on market capitalization of listed companies. It was formed from the merger of Japan’s two largest previous exchanges, making it a dominant player in the Japanese financial markets.

The Japan
Exchange Group (JPX) released its trading overview for 2023, showing record
activity in the Japanese stock market. In the cash equity market, the annual
trading value for the main floor of domestic common stocks reached 943.7637
trillion yen, an all-time high

According
to the press release from today (Friday), trading was also robust for domestic
ETFs at 57.76 trillion yen, the sixth-highest on record, and J-REITs at 12.9144
trillion yen, the fifth-highest.

The
derivatives market also saw heavy trading, with a total volume at 394,038,423
contracts, the third-highest on record. Total derivatives trading value hit a
new record of 3,538 trillion yen.

Night
session trading made up 37.5% of the total volume of derivatives. Trading volume
specifically for TOPIX futures contracts came in at 26,627,140, the
second-highest ever.

In
December, the monthly derivatives volume was 34,575,752 contracts, while the value
reached 430 trillion yen, the highest December figure. TSE REIT Index futures
set a new monthly volume record of 286,364 contracts.

Analysts
cite the weakening yen, continued economic recovery, and improving corporate
governance as reasons for the heightened investor interest and trading activity
in Japanese stocks. The increased volumes indicate global confidence in the
Tokyo market going into 2024.

JPX is a large financial exchange holding company that operates multiple exchanges in Japan and is one of the top 5 largest exchange operators globally based on market capitalization of listed companies. It was formed from the merger of Japan’s two largest previous exchanges, making it a dominant player in the Japanese financial markets.

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