Japanese Stock Market

An Insight Into The Japanese Stock Market History

Japan is arguably the most developed nation of Asia. It has grown in every sector, especially in IT and electronics. This development has taken place in the post World War II era when Japan was devastated after nuclear attacks on its two major cities, Hiroshima and Nagasaki. The Japanese stock market history begins right from there.

The history of the Japanese stock market begins with the introduction of securities system in Japan. The securities system and public bonds were introduced in the 1870's in Japan. After its introduction, there was need for a public trading organization. So, to meet this need of the people, the government of Japan enacted stock exchange Ordinance in May 1878, and Tokyo stock Exchange Co. LTD was established as per this ordinance on 15th May 1878, and the trading started simultaneously on 1st June.

After this, the Japan Securities Exchange Law was enacted by Government of Japan in March 1943, as a war time controlled measure during the World War II. In the same year, on 30th June, Japanese Securities exchange was established by unifying 11 different stock exchanges scattered throughout the country.. This was a quasi-public corporation, and was later dissolved in 1947.

During the World War II, the worsening war conditions forced Japan to suspend the trading sessions in all securities markets in the country for sometime. The trading was then restarted through unofficial group transactions from December 1945. This signaled the beginning of a new era, and also put an end to the sufferings of the Japanese people. .

After the end of war, Japan started rebuilding its economy. Certain stern measures were taken by the Japanese government to strengthen its economy. One such measure was the enactment of the Securities and Exchange Law that was made in March 1947. After its enactment, it was thoroughly revised in April 1948. After a year, three different stock exchanges were established in three major cities of Japan, namely, Tokyo, Nagoya, and Osaka.

In the same year, five other stock exchanges were also established in Japan. But five out of these eight stock exchanges have been either dissolved or been merged with other stock exchanges. Now Japan has five major stock exchanges. These stock exchanges are in Tokyo, Osaka, Fukuoka, Nagoya and Sapporo.

These five stock exchanges are counted among the major stock exchanges of the world. The biggest of them is Tokyo Stock Exchange, which is also known as Nikkie. This is among one of the top stock markets of Asia.

The Japanese Stock Market History, as one can see, is quite interesting. An analysis of it is vital to understand the factors that has been fueling the economy of the country.