Japan Nikkei

Japanese Share Market Brief Overview

RASInvest
Publish date: Sat, 27 Aug 2022, 10:13 AM
A brief introduction to Japanese share market

Tokyo Stock Exchange (TSE): - 

A stock exchange located in Tokyo Japan, the third largest stock exchange in the world by aggregate market capitalisation. Exchange is owned by Japan Exchange Group (JPX) that is also listed as TYO: 8697. TSE was first established on 15-May-1878 then combined with 11 other stock exchanges in 1943.


TSE is separated into three market sections: Prime (large companies), Standard (Mid sized companies), and Growth (High-growth startup) sections. Main indices tracking are Nikkei 225 selected by Nihon Keizai Shimbun (Nikkei flagship newspaper), TOPIX based on share prices of Prime companies, and J30 index of large industrial companies maintained by Japan's major broadsheet newspapers. 


The list of Nikkei 225 companies that Malaysian may be familiar with includes: 

  • Inpex Corp (TYO: 1605) - largest oil and gas company in Japan.
  • JGC Corp (TYO: 1963) - engineering and construction company
  • Ajinomoto Co., Inc (TYO: 2802) - famous for food seasoning. Malaysia subsidiary list in Bursa under code 2658
  • Japan Tobacco (TYO 2914) - Cigarette manufacturing and known in Malaysia for Camel, Mevius, Salem, Winston, Benson & Hedges brand. Malaysia subsidiary was listed in Bursa but delisted. 
  • Eneos Holdings (TYO:5020) - petrochemical refining
  • Bridgestone Corp (TYP: 5108) - known in Malaysia for car tyre
  • Daikin Industries (TYO: 6367) - known in Malaysia for air-con
  • Canon Inc (TYO: 7751) - known in Malaysia for printer
  • Omron Corp (TYO: 6645) - known in Malaysia for instruments and health meter
  • Panasonic Corp (TYO: 6752) - known in Malaysia for home appliances. Malaysia subsidiary list in Bursa under code 3719
  • Sony Corp (TYO: 6758) - known in Malaysia for PlayStation console and electronics
  • Honda Motor (TYO: 7267)
  • Isuzu Motor (TYO: 7202)
  • Mazda Motor Corp (TYO:7261)
  • Mitsubishi Motors Corp (TYO: 7211)
  • Nissan Motor (TYO:7201)
  • ​Subaru Corp (TYO: 7270)
  • Suzuki Motor Corp (TYO: 7269)
  • Toyota Motor Corp (TYO: 7203)
  • Yamaha Motor Company (TYO: 7272)​
  • Nikon Corp (TYO: 7731): known in Malaysia for DSL camera
  • Aeon Co (TYO: 8267): retain brand, Malaysia subsidiary list in Bursa under code 6599
  • Fast Retailing (TYO:9983): Parent company of Uniqlo Clothing
  • Seven& I Holdings (TYO: 3382): Franchise holder of 7-11 
  • ANA Holdings (TYO: 9202): Airlines 
  • Nintendo Co (TYO: 7974): Gaming Console and IP owner of Super Mario, Pokemon. 


Nikkei average hit its all-time high on 29-December-1989 reached intra-day high of 38,957.44 which would then followed by famous Japan Lost Decades. Since 2013, Bank of Japan (BOJ) basically owned circa 75% of all Japanese Exchange Traded Funds (ETF) and rev a top 10 shareholder of 90% of The Nikkei 225 constituents. After years, Nikkei average barely breached the 30,000 benchmark on 15-February 2021 partly due to the levels of monetary stimulus and asset purchase programs executed by BOJ to mitigate financial effects of Covid-19 pandemic. 

In Aug 2020, investor Mr. Warren Buffett's Berkshire Harthaway disclosed had purchased a total of about $6 billion of stocks in 5 Japanese trading company namely Itochu, Marubeni, Mitsubishi, Mitsui & Co. and Sumitomo.  


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