The Japan Exchange Group (JPX) has unveiled its trading report for 2023, revealing a remarkable surge in activity within the Japanese stock market.
In an impressive milestone, the annual trading value for domestic common stocks on the primary trading floor reached an unprecedented 943.7637 trillion yen, marking an all-time high.
JPX’s press release issued today also highlights substantial trading activity in domestic Exchange-Traded Funds (ETFs) and Japanese Real Estate Investment Trusts (J-REITs).
Domestic ETFs saw a robust performance, with trading volumes totaling 57.76 trillion yen, ranking as the sixth-highest on record.
Similarly, J-REITs exhibited strong trading activity, reaching 12.9144 trillion yen, ranking as the fifth-highest on record.
The derivatives market demonstrated remarkable vigor, with the total contract volume soaring to 394,038,423 contracts, ranking as the third-highest on record.
The total value of derivatives trading hit an unprecedented 3,538 trillion yen. Notably, night session trading accounted for 37.5% of the total derivatives volume.
Trading specifically for TOPIX futures contracts was noteworthy, reaching 26,627,140 contracts, the second-highest ever recorded.
In the month of December, the derivatives market remained vibrant with a monthly volume of 34,575,752 contracts and a value of 430 trillion yen, marking the highest December figure on record.
TSE REIT Index futures set a new monthly volume record, with 286,364 contracts traded.
Market analysts attribute this surge in trading activity to several factors, including the depreciation of the yen, a sustained economic recovery, and improvements in corporate governance.
These developments have fueled heightened investor interest and confidence in Japanese stocks.
The increased trading volumes also reflect global investors’ growing faith in the Tokyo market as they enter 2024.
JPX, a prominent financial exchange holding company, operates multiple exchanges within Japan and is one of the world’s top five largest exchange operators based on the market capitalization of listed companies.
The organization was established through the merger of Japan’s two largest previous exchanges, consolidating its dominant position in the Japanese financial markets.