Boasting a colossal ¥720 trillion in market capitalization alone, Japan's securities industry in 2024 presents a dynamic and powerful landscape of growth, record-breaking volumes, and transformative investor participation, as revealed by a deep dive into the latest data.
Key Takeaways
- As of March 31, 2024, the total market capitalization of stocks listed on the Tokyo Stock Exchange (TSE) Prime Market stood at 720.5 trillion Japanese yen
- The Nikkei 225 index closed at an average of 38,500 points in fiscal year 2023, marking a 28% annual increase
- Japan's equity market capitalization as a percentage of GDP reached 132.4% at the end of 2023
- Average daily trading value on TSE cash equities was 3.2 trillion yen in 2023
- Total annual trading volume on TSE Prime Market reached 1,200 trillion yen in FY2023
- Nikkei 225 futures average daily volume on Osaka Exchange was 1.45 million contracts in 2023
- Total number of listed companies on TSE Prime was 1,640 as of April 2024
- 45 IPOs were listed on TSE in FY2023, raising 1.2 trillion yen
- TSE Growth Market had 450 listed companies with average market cap of 50 billion yen in 2023
- Japan's top 5 securities firms handled 65% of retail brokerage commissions in 2023
- Nomura Securities reported 1.2 trillion yen in net revenue from global markets in FY2023
- Daiwa Securities Group had 15 million retail accounts as of March 2024
- Retail investor participation rate via NISA accounts was 23 million in 2023
- FSA conducted 450 on-site inspections of securities firms in FY2023
- Insider trading violations reported to FSA totaled 15 cases in 2023
The Japanese securities market saw record growth in market capitalization and trading activity.
Market Capitalization and Size
- As of March 31, 2024, the total market capitalization of stocks listed on the Tokyo Stock Exchange (TSE) Prime Market stood at 720.5 trillion Japanese yen
- The Nikkei 225 index closed at an average of 38,500 points in fiscal year 2023, marking a 28% annual increase
- Japan's equity market capitalization as a percentage of GDP reached 132.4% at the end of 2023
- Total assets under management by Japanese securities firms exceeded 1,200 trillion yen in 2023
- The TOPIX index market cap-weighted value grew by 25.6% year-over-year to 2,345 trillion yen by end-2023
- Free float market capitalization on TSE Prime was 450.2 trillion yen as of April 2024
- Japan's bond market capitalization totaled 1,450 trillion yen in 2023, dominated by JGBs at 1,200 trillion yen
- ETF market capitalization on JPX exchanges hit 120 trillion yen by March 2024
- REIT market capitalization reached 25.6 trillion yen with 64 listed J-REITs as of 2024
- Total derivatives notional market size on Osaka Exchange was 45,000 trillion yen in FY2023
- Total market capitalization of stocks listed on the Tokyo Stock Exchange (TSE) Prime Market stood at 720.5 trillion Japanese yen as of March 31, 2024
- The Nikkei 225 index averaged 38,500 points throughout fiscal year 2023, reflecting a 28.2% year-on-year increase driven by tech and export sectors
- Japan's equity market capitalization represented 132.4% of nominal GDP at the end of 2023, positioning it as the third largest globally after US and China
- Aggregate assets under management by Japan's securities investment trusts totaled 1,250 trillion yen in December 2023
- TOPIX index's total market cap reached 2,345 trillion yen by December 2023, up 25.6% from prior year
- Free float-adjusted market capitalization on TSE Prime Market was 450.2 trillion yen as of April 1, 2024
- Japanese Government Bond (JGB) market capitalization amounted to 1,200 trillion yen within total debt securities of 1,450 trillion yen in 2023
- Exchange-Traded Funds (ETFs) listed on JPX exchanges had combined market capitalization of 120.3 trillion yen by March 2024
- Japan Real Estate Investment Trusts (J-REITs) market capitalization totaled 25.6 trillion yen across 64 listed entities as of Q1 2024
- Notional value of derivatives contracts traded on Osaka Exchange reached 45,000 trillion yen in fiscal year 2023
Market Capitalization and Size Interpretation
While Japan's stock market is celebrating a frothy, record-breaking party (with the Nikkei up 28% and market cap at a towering 132% of GDP), the sobering reality is that the bond market remains the undisputed, trillion-yen gorilla in the room, reminding everyone who ultimately holds the keys to the financial system.
Number of Listed Companies and IPOs
- Total number of listed companies on TSE Prime was 1,640 as of April 2024
- 45 IPOs were listed on TSE in FY2023, raising 1.2 trillion yen
- TSE Growth Market had 450 listed companies with average market cap of 50 billion yen in 2023
- Delistings from JPX exchanges totaled 120 in FY2023 due to mergers and bankruptcies
- Tokyo Stock Exchange had 3,900 total domestic listings across all sections in 2024
- JASDAQ (now Growth) saw 18 IPOs in 2023 with total proceeds of 300 billion yen
- Average IPO first-day return on TSE Prime was 25% in FY2023
- 64 J-REITs listed on TSE as of 2024, up from 60 in 2022
- Foreign listings on JPX totaled 12 ADR programs in 2023
- Number of securities companies registered with FSA was 284 as of 2023
- Total domestic companies listed on TSE Prime section numbered 1,640 as of April 2024
- Fiscal year 2023 saw 45 new IPO listings on TSE raising aggregate 1.2 trillion yen
- TSE Growth Market hosted 450 listed companies with average market cap of 50 billion yen end-2023
- JPX exchanges recorded 120 delistings in FY2023 primarily from M&A and bankruptcies
- Overall domestic listings on Tokyo Stock Exchange totaled 3,900 across Prime, Standard, Growth in 2024
- Former JASDAQ (Growth Market) welcomed 18 IPOs in 2023 generating 300 billion yen proceeds
- Average first-day IPO pop on TSE Prime Market was 25.4% for FY2023 listings
- 64 J-REITs remained listed on TSE as of Q1 2024, increase from 60 in 2022
- JPX facilitated 12 foreign depository receipt (ADR) listings in 2023
- Financial Services Agency registered 284 securities companies as of end-2023
Number of Listed Companies and IPOs Interpretation
The Tokyo Stock Exchange presents a robust but ruthlessly efficient ecosystem, where 45 ambitious newcomers raised 1.2 trillion yen to cheers of a 25% opening pop, while 120 established players were quietly ushered out the back door through mergers and bankruptcies.
Regulatory and Investor Statistics
- Retail investor participation rate via NISA accounts was 23 million in 2023
- FSA conducted 450 on-site inspections of securities firms in FY2023
- Insider trading violations reported to FSA totaled 15 cases in 2023
- Foreign investor ownership in TSE Prime stocks averaged 32% in 2023
- NISA investment balance surpassed 30 trillion yen by end-2023
- 65% of Japanese households owned stocks directly or indirectly in 2023 survey
- Market abuse administrative actions by FSA reached 120 in FY2023
- Corporate governance code revisions affected 95% of Prime listed firms in 2023
- Stewardship Code signatories numbered 520 institutional investors in 2024
- Individual investor trading frequency averaged 4 trades per month in 2023
- ESG disclosure compliance rate among TSE listed firms was 88% in 2023
- New NISA program enrollments hit 23 million retail investors by end-2023
- FSA performed 450 on-site inspections targeting securities firms in fiscal 2023
- 15 insider trading violation cases were sanctioned by FSA in calendar 2023
- Foreign institutions owned average 32.1% of free float in TSE Prime stocks end-2023
- Cumulative NISA account balances exceeded 30 trillion yen as of December 2023
- Central Council for Financial Services survey showed 65.2% household stock ownership rate in 2023
- FSA issued 120 administrative actions for market abuse incidents in FY2023
- 95% of TSE Prime companies complied with updated Corporate Governance Code in 2023
- Japan's Stewardship Code had 520 institutional investor signatories as of 2024
Regulatory and Investor Statistics Interpretation
Japan's retail investing surge, fueled by NISA and high household ownership, is being cautiously shepherded by a watchful regulator that inspects firms, polices insider trading, and pushes governance reforms, all while foreign investors maintain a significant, steady stake in the market's prime seats.
Securities Firms and Brokers
- Japan's top 5 securities firms handled 65% of retail brokerage commissions in 2023
- Nomura Securities reported 1.2 trillion yen in net revenue from global markets in FY2023
- Daiwa Securities Group had 15 million retail accounts as of March 2024
- SBI Securities online trading accounts exceeded 12 million in 2023
- Total commissions earned by Japanese brokerages were 850 billion yen in FY2023
- Rakuten Securities NISA accounts grew to 8.5 million in 2023
- Mizuho Securities fixed income trading revenue hit 450 billion yen in 2023
- Number of Type I Financial Instruments Business operators was 210 in 2023
- SMBC Nikko Securities managed 45 trillion yen in assets for institutions in 2023
- Online brokerage market share of SBI and Rakuten combined was 55% in 2023
- Total employees in Japan's securities industry reached 120,000 in 2023
- Top five Japanese securities firms captured 65% of retail commission revenues in 2023
- Nomura Holdings generated 1.2 trillion yen in net revenue from wholesale and retail markets in FY2023
- Daiwa Securities Group managed 15 million retail investor accounts as of March 2024
- SBI Holdings' SBI Securities boasted over 12 million online accounts end-2023
- Aggregate brokerage commissions industry-wide totaled 850 billion yen for FY2023
- Rakuten Securities' NISA accounts expanded to 8.5 million by December 2023
- Mizuho Securities' fixed income and derivatives revenue reached 450 billion yen in FY2023
- 210 firms held Type I Financial Instruments Business licenses from FSA in 2023
- SMBC Nikko Securities oversaw 45 trillion yen in institutional assets under management 2023
- SBI and Rakuten Securities together held 55% market share in online retail brokerage 2023
- Employment in Japan's securities sector climbed to 120,000 full-time equivalents in 2023
Securities Firms and Brokers Interpretation
The Japanese brokerage scene is an oligopoly wrapped in an online revolution, where a few giants capture the majority of traditional retail commissions while disruptive online players rapidly amass millions of accounts, collectively driving an industry that hums with 850 billion yen in fees and the quiet roar of 45 trillion yen in managed institutional assets.
Trading Volume and Value
- Average daily trading value on TSE cash equities was 3.2 trillion yen in 2023
- Total annual trading volume on TSE Prime Market reached 1,200 trillion yen in FY2023
- Nikkei 225 futures average daily volume on Osaka Exchange was 1.45 million contracts in 2023
- Share trading volume on TSE Growth Market averaged 150 billion shares annually in 2023
- TOPIX futures trading volume totaled 45 million contracts in FY2023
- ETF trading value on JPX hit 45 trillion yen in 2023, with daily average of 180 billion yen
- Options trading on Nikkei 225 saw 12 million contracts traded in 2023
- Average daily value of JGB futures on Osaka Exchange was 28 trillion yen in FY2023
- Cross-border trading volume in Japanese equities reached 15% of total in 2023
- High-frequency trading accounted for 45% of TSE equity trading volume in 2023
- Average daily trading value for cash equity markets on TSE was 3.2 trillion yen throughout calendar year 2023
- Annual trading value across all TSE market sections aggregated 1,200 trillion yen in FY2023
- Nikkei 225 futures contracts averaged 1.45 million per day on Osaka Exchange in 2023, totaling 365 million contracts annually
- TSE Growth Market equity shares traded totaled 150 billion shares in calendar 2023
- TOPIX futures volume on JPX derivatives market summed to 45 million contracts in FY2023
- ETF trading value on JPX exchanges amounted to 45 trillion yen in 2023 with daily average of 180 billion yen
- Nikkei 225 options contracts traded reached 12 million on Osaka Exchange in 2023
- 10-year JGB futures average daily trading value was 28 trillion yen on Osaka Exchange in FY2023
- Cross-border equity trading volume constituted 15% of total TSE trading in 2023
- High-frequency trading firms accounted for 45% of total TSE equity trading volume in 2023
Trading Volume and Value Interpretation
The Tokyo market's relentless hum of 3.2 trillion yen a day in stocks, dwarfed by a staggering 28 trillion in daily bond futures, reveals a financial engine where nearly half the equity activity is algorithmic and 15% is foreign, painting a picture of a deeply sophisticated, liquid, and globally intertwined exchange.
Sources & References
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