The Japan Exchange Group (JPX) released its trading overview for 2023, showing record activity in the Japanese stock market. In the cash equity market, the annual trading value for the main floor of domestic common stocks reached 943.7637 trillion yen, an all-time high

Record Trading in Japan Stock Market for 2023

According to the press release from today (Friday), trading was additionally robust for domestic ETFs at 57.76 trillion yen, the sixth-highest on record, and J-REITs at 12.9144 trillion yen, the fifth-highest.

The derivatives market further saw heavy trading, with a total volume at 394,038,423 contracts, the third-highest on record. Total derivatives trading value hit a new record of 3,538 trillion yen.

Night session trading made up 37.5% of the total volume of derivatives. Trading volume specifically for TOPIX futures contracts came in at 26,627,140, the second-highest ever.

In December, the monthly derivatives volume was 34,575,752 contracts, while the value reached 430 trillion yen, the highest December figure. TSE REIT Index futures set a new monthly volume record of 286,364 contracts.

Analysts cite the weakening yen, continued economic recovery, and improving corporate governance as reasons for the heightened investor interest and trading activity in Japanese stocks. The increased volumes indicate global confidence in the Tokyo market going into 2024.

JPX is a large financial exchange holding company that operates multiple exchanges in Japan and is one of the top 5 largest exchange operators globally based on market capitalization of listed companies. It was formed from the merger of Japan's two largest previous exchanges, making it a dominant player in the Japanese financial markets.