It has been revealed that the market capitalization of the stocks of companies listed on the Tokyo Stock Exchange has exceeded that of China's Shanghai Stock Exchange for the first time in about three and a half years. It appears that there is a movement to allocate funds to the Japanese market in response to factors such as the slowdown in the Chinese economy.
According to a summary by the International Federation of Exchanges, which is a member group of exchanges around the world, the total market capitalization of companies listed on the Tokyo Stock Exchange was $6.34 trillion as of the end of last month. exceeded $43.3 trillion.
This is the first time in about three and a half years since June 2020 that the market capitalization of companies listed on the TSE has exceeded that of the Shanghai Stock Exchange, and TSE has regained the top spot in the Asian market.
As of the end of January 2023, one year ago, the market capitalization of the TSE was $5.6502 trillion and the Shanghai Stock Exchange was $7.265 trillion, but stock prices in the Shanghai market have slumped due to factors such as the slowdown in the Chinese economy. In contrast, the Nikkei Stock Average has been rising sharply since the beginning of this year.
Last week on the 16th, the price remained high, reaching the 38,800 yen level for the first time in 34 years during trading hours, and the increase from the beginning of this year to the 19th has exceeded 5,000 yen.
Yugo Tsuboi, chief strategist for Japanese and US stocks at Daiwa Securities, said, ``Investors investing in Asian stocks are shifting their funds from the Chinese market, where the real estate recession continues and there are concerns about economic stagnation, to the Japanese market, where corporate performance is strong.'' "This may be due to this shift," he points out.