The Japanese Stock Market Faces a Major Reversal! Since December 29, 1989, the Nikkei index has remained subdued, finally resurrecting after 34 years of dormancy, reaching the 39000 level, and breaking above the 39000 resistance level on the 19th of last month, Takami reached 40109.23 points for the first time in history!
Indeed, the JPI showed a solid and attractive trend since 2023, this time recording the largest increase since 1989, driven by continued benefit from corporate profit growth, improved capital efficiency and the policy environment's support for market liquidity.
Extended Reading:Japanese Stock Market Bull Market Sentiment Analysis
Is it worth investing in the Japanese stock market?
Late on February 24, Buffett disclosed in a one-year letter to shareholders that Baja Gun held 5% of shares in five Japanese business enterprises from 5% to now holding nearly 9% each.
To date, the investment cost of the five companies in Bago Region totaled ¥1.6 trillion, and the year-end market capitalization of the five companies was ¥2.9 trillion. With the yen falling in recent years, Baja Shire achieved a year-end dollar gain of 61% to US$80 billion.
NOTABLY, BUFFETT, 92, SAID IN A SHAREHOLDER LETTER THAT HE WOULD CONTINUE TO HOLD SHARES IN THE FIVE LARGEST MERCHANT ASSOCIATIONS, PREVIOUSLY REVEALING THAT HE PLANS TO HOLD THE INVESTMENTS FOR 10 TO 20 YEARS.
Mitsui Commercial Corporation, Mitsubishi Commercial, Ito-Tadao, Sumitomo Commerce, Maruhoni Co., Ltd., are known as Japan's “Top Five Companies”. They are historical and large-scale business groups that play an important role in the Japanese economy.
These companies are characterized by their highly diversified business, covering trade in a wide range of products and materials, involving natural resources, energy, chemicals, metals, manufacturing, retail, real estate and healthcare, helping Japan's economy move onto the global stage.
Diversified business, high dividends, high free cash flow, and prudent addition of new shares are important reasons why Buffett invests in the top five trading companies. In addition, it is worth noting that the five largest Japanese trade union stocks are diversified, which are similar to those of Ba District itself:
All five companies have followed a shareholder-friendly strategy that has reduced the number of circulating shares at attractive prices since we began our acquisition of Japanese shares;
All five companies use only about a third of the proceeds for dividends, leaving huge amounts of money to build up the rest of their businesses and, to a lesser extent, to buy back stocks. Like Hampshire, the five companies are unwilling to issue shares.
Source: Futu Information Five of the top five trading houses at Buffett Guarantee earned $80 billion, which Japanese equity ETFs are worth deploying? 2024-02-26
What is the Nikkei 225 Index and Tokyo-based Index?
Before investing in the Japanese stock market, you should first familiarize yourself with the following two major indices:
Nikkei 225 Index
THE NIKKEI 225 INDEX IS THE MOST REPRESENTATIVE STOCK INDEX IN JAPAN. IT CONSISTS OF 225 LISTED COMPANIES LISTED ON THE TOKYO STOCK EXCHANGE (TSE), COVERING ALL SECTORS OF THE JAPANESE ECONOMY AND IS PRICE-WEIGHTED. THEREFORE, THE HIGHER THE COMPANY'S SHARE PRICE, THE GREATER THE IMPACT ON THE STOCK INDEX. These include Toyota Motor, Mitsubishi Nissan Financial, Tokyo Electronics, Gaines and Canon*, among others.
The Nikkei 225 index is considered an important indicator for the Japanese stock market and a focus for global investors. It can effectively analyze and evaluate the movements of the Japanese stock market, reflecting the overall performance of the Japanese economy and stock market. viewingNikkei Real-Time Index.
Topix Index
The TOPIX is another important stock price index on the Japanese stock market, representing the overall price performance of companies listed on the Tokyo Stock Exchange, including about 2,200 shares of companies in different sectors, known as the “East Exchange Index”. Unlike the JPY 225 index, the TOPIX index does not consider market capitalization but uses the free floating market capitalization method, which is based on the free floating capital market capitalization of each company. viewingTokyo-based Real-Time Index.
Must-Read Guide Before Entering the Japanese Stock Market
Japanese Stock Market Opening Hours
Japanese stock market opening hours are 9:00 a.m. to 11:30 p.m. local time; 12:30 p.m. to 3:00 p.m. (i.e. 8:00 a.m. to 10:30 p.m. Hong Kong time; 11:30 a.m. to 2 p.m.)
Trading rules for Japanese stocks
When trading Japanese stocks, you need to pay attention to the following basic order rules:
Stock Code: The stock codes of Japanese stocks, like those of Hong Kong stocks, are made up of numbers. Please make sure to enter the correct stock code to avoid creating a wrong trade.
Trading Units: In Japanese stock trading, “100 shares” is usually the trading unit. When placing an order, please confirm the quantity carefully to avoid entering errors. (Some stocks or ETFs are traded as “1 share” or “10 shares”)
Day Up and Down Limits: Japanese stocks have upside and fall limits designed to control market volatility to maintain market stability. Depending on the stock price range, it is roughly around 20% to 30%. Trading will be suspended as soon as the share price exceeds the limit.
Order Amount: There are two types of order amounts.
Market Order: Trade at the current market price at the time. If the current market price is $100, buy or sell for $100.
Limit Order: Limit the price at which you want to buy or sell. If the market price is $100, but you want to buy or sell for $90, you can select a limit order and enter $90.
Support for non-trading period orders (pre-buried orders):
After the lunch break (10:30 Hong Kong time), you can place your order in advance at lunchtime. Orders will be automatically placed in line after the midday market opening (11:05 Hong Kong time).
Orders can be placed in advance for T+1 days after the T+1 market close (14:00 Hong Kong time). Orders will be automatically queued after T+1 (07:00 Hong Kong time).
How to invest in the Japanese stock market?
If you want to invest in the Japanese stock market in Hong Kong, you can choose
ETFs Investing in the Hong Kong and US Stock Market
Buy Japanese Stocks Directly
How to invest in Japanese Equity ETFs on the Hong Kong US Stock Market in Hong Kong?
After Japanese stocks just made history at the end of February, many industry insiders have indicated that greater upside could be expected if they break further above this integer level in a short period of time. Immediately, break the 40,000 mark in March!
Within minutes of hitting a new high for the first time since 1989, traders at the Tokyo trading room of Nomura Securities rallied to applause. And the broker's CEO Kentaro Okuda now believes that even at such a high level, the Japanese stock market is still in a “buy position”.
Looking ahead to the market, further purchases by foreign investors may continue to be a potential driver for the Japanese stock market. According to industry-reclassified capital flow data, billions of yen may return to the Japanese market in the future.
Compared to Hong Kong and US stocks, the Japanese market is smaller and it is more difficult for investors to invest directly in the Japanese stock market. Investors who are interested in investing in the Japanese market but do not know where to start can borrow Hong Kong stocks and participate in Japanese ETFs in the US stock market.
Data Source:investing HK 2024-2-24
If you want to know the specifics of each daily stock ETF, you can seeHow to Invest in the Japanese Market with Japanese Stock ETF.
How to buy Japanese stocks and ETFs in Hong Kong?
Futu Securities will exclude the provision of Hong Kong American Stock Exchange Services, and provide more daily equity shares,Japan ETF ProductsOptions trading services, andJapanese Stock Live Streaming QuotesClick here for the best deals. Currently, Futu will receive 0.08% gold on the day of purchase, with a minimum transaction fee of 80 yen per coin.
Following are the steps to buy Futubull shares:
1. Go toFutu Internet, and register a new account.(Register now)
2.Open a securities account in a Futu account and add a combined account, click the button below to open now and enjoy the GBP Open Reward.(How to open an account)
3. Deposit funds via EdDA Quick Deposit, Fast Transfer (FPS), Bank Transfer.(How to deposit funds)
4.Download the Futubull App and log in.(Download now)
5. Click “Trade” in the lower left corner of the stock quotation page to activate the daily stock market function and start selling. (How to trade shares on Futubull)
6. If you intend to invest in a day stock ETF, you can search for [Japanese Stock ETF] in the search box to track more ETFs, or on the ETF Funds page, you can learn about the leading positions held by each ETF for your investment decisions.
In addition, Futu supports bidirectional currency exchange (HKD and JPY to USD and JPY to RMB and JPY), so that transactions can be completed quickly without the need for an additional exchange and transfer process.
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*Data source: Futubull's quota as of 5 April 2024 is determined by the 5 companies with the highest market capitalization of the day.
