Tokyo Stock Exchange (TSE) - statistics & facts
Japan’s Tokyo Stock Exchange (TSE) is one of the largest in the world. It boasts the fourth-largest aggregated market capitalization and the largest number of listed companies worldwide, among them global players like Toyota, Sony, and Nintendo. 2024 so far has been an eventful year for the TSE. From the benchmark index Nikkei 225 surpassing an all-time high of 1989 to a mini crash that shook global financial markets, Japan’s stock market experienced historical ups and downs.
With a market capitalization of over 966 trillion Japanese yen, the TSE is one of the largest stock exchanges in Asia, as well as worldwide. It counts more than 3.9 thousand listed companies organized in three market segments, which is the largest number of listed companies on stock exchanges worldwide. The most important indices tracking the performance of stocks traded on the TSE are the Nikkei 225 Index and the Tokyo Stock Price Index (TOPIX).
A major restructuring of the TSE aimed at simplifying market segments and strengthening corporate governance of companies was implemented in April 2022. The number of market segments was slimmed down from four to three, the Prime Market, the Standard Market, and the Growth Market. Additional reforms were initiated in April 2023.
A combination of different factors, including the central bank’s announcement to raise interest rates for a second time, is thought to have triggered a sell-off in stocks and the unwinding of yen carry trades. Carry trading is a trading strategy that involves borrowing in a low-interest rate currency to invest in higher yielding assets.
While the crash affected financial markets worldwide, the Japanese stock market rebounded soon afterward and has been on a path of recovery since. Corporate reforms and higher earnings are regarded as potential drivers for further growth in 2025.
Organization and restructuring
Japan’s main stock exchange, the Tokyo Stock Exchange (TSE), has a history dating back to 1878. It is operated by Japan Exchange Group (JPX) and located in Japan’s Wall Street, Kabutocho, a neighborhood in the business district of Nihonbashi in Tokyo.With a market capitalization of over 966 trillion Japanese yen, the TSE is one of the largest stock exchanges in Asia, as well as worldwide. It counts more than 3.9 thousand listed companies organized in three market segments, which is the largest number of listed companies on stock exchanges worldwide. The most important indices tracking the performance of stocks traded on the TSE are the Nikkei 225 Index and the Tokyo Stock Price Index (TOPIX).
A major restructuring of the TSE aimed at simplifying market segments and strengthening corporate governance of companies was implemented in April 2022. The number of market segments was slimmed down from four to three, the Prime Market, the Standard Market, and the Growth Market. Additional reforms were initiated in April 2023.
2024: historical highs and lows for the TSE
Japanese stocks have been on the rise in 2024. The Nikkei 225 Index surpassed a 34-year-old record set in 1989 in February and reached a new all-time high in July. But Japan’s stock market also experienced one of the most turbulent days in its history. On August 5, stock prices collapsed, with the sharpest single-day loss recorded since 1987.A combination of different factors, including the central bank’s announcement to raise interest rates for a second time, is thought to have triggered a sell-off in stocks and the unwinding of yen carry trades. Carry trading is a trading strategy that involves borrowing in a low-interest rate currency to invest in higher yielding assets.
While the crash affected financial markets worldwide, the Japanese stock market rebounded soon afterward and has been on a path of recovery since. Corporate reforms and higher earnings are regarded as potential drivers for further growth in 2025.
