The Japan Exchange Group (JPX) has recently released its trading overview for 2023, revealing record-breaking activity in the Japanese stock market. The annual trading value for the main floor of domestic common stocks reached an all-time high of 943.7637 trillion yen in the cash equity market.
Record Trading in Japan Stock Market for 2023
The press release from today (Friday) also reported robust trading 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 of 394,038,423 contracts, the third-highest on record. The total derivatives trading value reached a new record of 3,538 trillion yen.
Night session trading accounted for 37.5% of the total volume of derivatives. Specifically, trading volume for TOPIX futures contracts reached 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 attribute the heightened investor interest and trading activity in Japanese stocks to the weakening yen, continued economic recovery, and improving corporate governance. The increased volumes also indicate global confidence in the Tokyo market going into 2024.
JPX is a leading financial exchange holding company that operates multiple exchanges in Japan and is among the top 5 largest exchange operators globally based on market capitalization of listed companies. It was formed through the merger of Japan’s two largest previous exchanges, making it a dominant player in the Japanese financial markets.