Date Last Updated: August 18, 2019
Asia

Stock Market Guide to the Tokyo Stock Exchange

The Tokyo Stock Exchange, or TSE, is one of five stock exchanges that operate in Japan, and is known to be one of the most important stock exchanges in the world, trading with approximately 1.5 million shares, on average, in a day. Within Japan, the Tokyo Stock Exchange is without a doubt the biggest. The TSE has about 2276 companies listed, both internationally and on the domestic market. This amazing exchange sprang to life in May 1878, with its doors opening for trade on the 1st of June, in the same year. The Tokyo Stock Exchange does its trading on an electronic auction system that runs continuously. Once a broker or client representative either places an order, or buy and sell prices are matched, the deal will be finalized automatically. The system allows direct trades between sellers and buyers, and therefore, the Tokyo Stock Exchange enforces controls on pricing. Price controls are set in place to ensure that dramatic price changes do not occur, and that the trade of a specific stock doesn’t crash. The derivatives market of the TSE has been operational for twenty years, and has a competitive market and product range. Equities, Japanese government bonds and index options and futures are available. Well known companies such as Honda Motor Co Ltd, Sony Corp, Mitsubishi Corp, Canon Inc, Toyota Motor Corp and Toshiba Corp, are listed on the Tokyo Stock Exchange

The ecomony of Japan has long been seen as
one of the strongest in the world, but concern began in the 1980’s,
when
real estate prices and stock prices started to decline, and forced the
economy into a stagnant state. Over the following years, from the
1990’s to
present day, the growth has started to improve, and the government is
positive
that the recovery will continue and the economy will carry on growing
stronger.

The major export markets of Japan are China, Taiwan, the United
States,
South Korea, Singapore and Hong Kong. Products that are exported
include
electronic equipment, vehicles, chemicals and transport equipment.
Products
such as food products, raw materials, oil, wood, fuel, chemicals,
textiles
and equipment are imported from the United States, Australia,
Indonesia,
South Korea and China.

The agricultural sector of the economy is responsible for the
provision
of pork, eggs, fish, sugar beets, fruit, rice, poultry, dairy products
and
vegetables. The industrial sector produces vehicles, textiles, steel,
metals, chemicals, electronic equipment, processed food, tools and
ships.

Tokyo Stock Exchange Website