The Tokyo Stock Exchange regains first place in Asia by market capitalization

The Tokyo Stock Exchange has regained first place in Asia in terms of total market capitalization of listed companies in dollar terms, Kyodo News reported on February 19.

This comes about three and a half years after it lost the title to the Shanghai Stock Exchange.

The Nikkei 225 index is trading near its all-time high as Tokyo stocks get off to a strong start in 2024, helped by an economic slowdown in China that is forcing investors in Asian markets to shift funds to Japan.

Japan Exchange Group Inc is currently the world’s fourth-largest exchange operator based on the total market capitalization of stocks listed on its exchanges, according to the World Federation of Exchanges. The TSE accounts for the vast majority of the JPX exchanges’ market capitalization, JPX officials said.

Data from the federation shows that the group’s listed companies were valued at around $6.34 trillion (950 trillion yen) at the end of January, compared with around $6.04 trillion in Shanghai.

When Shanghai overtook Tokyo in July 2020, the total market capitalization of its listed companies was about $6.03 trillion, and the TSE, along with other exchanges run by the Japan Exchange Group, was valued at about $5. 55 billion dollars.

“There is a growing sense of unease among investors as real estate problems slow China’s economy and the country’s government tightens control over IT companies.”said Ayako Terada, strategist at Nomura Securities Co.

Terada added that “It is increasingly difficult to invest in China” due to geopolitical risks including a rift between the United States and China, which is fueling a trend toward global supply chains independent of China.

Source: Rossa Primavera