Tokyo Stock Exchange

The Tokyo Stock Exchange or TSE is the second largest stock exchange in the world following just behind the New York Stock Exchange. It therefore makes sense to consider this Exchange if you want to trade in the Asian markets. In 2010 the TSE had over 2,400 companies listed giving a combined capitalization of approximately $3.1 trillion. Apart from the well known Nikkei 225 index, the TSE is tracked in Japan by the TOPIX and the J30 indices.


The general trading session is from 9.00am to 11.00 and from 12.30pm to 3.00pm giving two opening and closing auctions each day. However, with the Internet many security companies offer 24hr trading. Orders are only valid for one day at a time, so if your order wasn't executed on that Trading Day you need to place your order again the next day. Settlement takes place on the third business day after trading (T+3).

Stock Prices

Stock prices in Japan are determined by two methods. One, which decides the opening and closing prices, is known as the Itayose method. The other, known as the Zaraba method, is used during general trading. There are also some other factors which determine which method is used that depend on the state of the order book. Ask your Japanese stock broker for a more detailed explanation of these two methods.

Venture Capital Market

The Mothers market (market of the high-growth and emerging stocks), began in 1999 and allows venture companies to seek investors. Whether you want to invest in emerging Japanese companies or are looking to raise capital from Japanese investors for your company, this is the market to go for.

Carbon Market

After the adoption of the Kyoto Protocol, carbon emission rights trading in Japan and elsewhere is expanding. The TSE together with the Tokyo Commodity Exchange (TOCOM) agreed in October 2009 to set up a joint emissions trading exchange in the near future.


Capital Gains, Dividend and Interest taxes are payable on stocks and shares and you should ask advice from your broker or tax advisor as to your liability if you trade on the TSE.

Market Information

Although companies listed on the TSE must submit an annual report to the Japanese Minster of Finance giving detailed information about the company's performance, these reports are only submitted in Japanese. If you are interested in investing in certain companies and there is no Annual Report or other information available in English or online, a 'Japan Company Handbook' in English is produced by Toyo Keizai Inc. for interested investors.

For up to date information on the TSE market conditions, TSE updates etc. you can subscribe to a weekly email called the Tokyo Exchange News (TEN) or look at the TSE website.