Japanese stocks hit a 30-year high. Who is the leader without internet giants?

category:Finance
 Japanese stocks hit a 30-year high. Who is the leader without internet giants?


As of November 30, the top three stocks in the Nikkei 225 index by market value were Toyota Motor, Softbank group and NTT DoCoMo, Japans largest telecom operator.

From the perspective of industry distribution, the industry with the largest weight in Nikkei 225 index is optional consumption, accounting for 20.7%, followed by industry 19.1%, telecommunication service 12.5%, and medical care 11.4%. In this highly concerned information technology sector, there are 28 listed companies, and the top three in terms of market value are Tokyo electronics, Hitachi and Yahoo Japan. Table 1 shows the market value of the top 30 listed companies in Japans stock market, and the market value increase in the past year and the past five years.

Table 1: Japans top 30 companies with the largest market capitalization, their growth in the past year and the past five years (data source: wind)

According to statistics, among the 30 companies with the largest market capitalization in Japan, m3, an internet medical service company, rose 204% in the past year. Closely followed by Softbank group, a telecom service provider, and the No.3 pharmaceutical company, up 70% and 69% respectively.

Table 2: in the past year, Nikkei 225s top 10 growth rate (data source: wind)

If the time is extended to five years, m3 will also rank first with an increase of 609%. Tokyo Electronics Co., Ltd., the first Third Republic, ranks second and third, with an increase of 359% and 273%.

Table 3: Top 10 Nikkei 225s growth in the past five years (data source: wind)

Reasons behind the rise of Japanese stock market

At the end of 1989, after more than four years of super bull market, Japans stock market bubble began to break down, and the index began to collapse. Then it began a long bear journey of 18 years. Although there have been many rebounds in the middle, the downward trend has not changed. In 2008, the subprime mortgage crisis from the United States swept the world, and the Japanese stock market was not immune. The Nikkei 225 index fell to its lowest level in nearly 30 years on October 28, 2008.

In order to deal with this serious financial crisis, the Bank of Japan successively cut interest rates in October and December 2008, and Japan returned to the era of zero interest rate. In addition, the Bank of Japan has put in a large amount of base currency through open market operation to stabilize the liquidity of financial institutions. At the beginning of 2009, the Bank of Japan directly intervened in the stock market, adopted price maintenance operation and began to buy a large number of stocks. In the first half of 2009, Nikkei 225 recovered to more than 10000 points.

Subsequently, the Japanese stock market began to rise steadily.

On December 26, 2012, Shinzo Abe took office as Japanese Prime Minister for the second time, and appointed toyohiko Kuroda as governor of the Bank of Japan in April 2013. Abe and Kuroda jointly adopted a package of financial and economic policies to stimulate the economy, known as abenomics.

In April 2013, the Bank of Japan announced the implementation of quantitative easing policy (QE Policy). After the large-scale money supply, the exchange rate of Japanese yen began to accelerate the depreciation. The yen fell against the US dollar for three consecutive years, with the depreciation rate reaching 35%, effectively stimulating the growth of Japans export trade. At the same time, through the supplementary budget, the Japanese government launched an emergency economic countermeasure of 20.2 trillion yen, and used government expenditure to stimulate the overall demand.

On November 26, the Bank of Japan released its semi annual financial report, announcing that its stock portfolio had made record returns in the six months. The Bank of Japan said that as of September 30, it held equity funds equivalent to nearly $400 billion, implying a portfolio profit of $56 billion. The gain comes from the fact that in March, the governor of the Bank of Japan, toyohiko Kuroda, doubled the limit on the annual purchase of exchange traded funds (ETFs) by the Bank of Japan to the equivalent of $115bn.

Shinzo Abe left office in August and became Japans longest serving prime minister after the war. As for his economic policies during his term of office, there are different opinions. The deep-seated economic problems in Japan, such as the huge government fiscal deficit, the continuous downturn of prices, the shortage of children and the aging, have not been well solved. However, the fact is that the Japanese stock market has maintained an upward trend during his term of office and is still strong after the new prime minister takes office.

On the whole, after the world entered the Internet era, Japan did not have a global influential technology giant. In Japan, Japans telecom operators maintain a high position in the market value rankings, but there has been no significant increase in the past five years. In the past five years, pharmaceutical companies have benefited greatly from the growth of the elderly population. The reason why Japans high-end manufacturing enterprises can achieve better growth is that the Japanese government has tried hard to maintain the weak yen for many years and promote export. Another noteworthy phenomenon is that when the Japanese stock market peaked in 1990, there were eight Japanese companies in the top ten companies with global market value. At present, only Japan Telegraph and telephone company, Toyota Motor and Sumitomo Mitsui bank are still operating independently, and the remaining five banks are reborn after restructuring. Source: Securities Times editor in charge: Yang Bin_ NF4368

On the whole, after the world entered the Internet era, Japan did not have a global influential technology giant. In Japan, Japans telecom operators maintain a high position in the market value rankings, but there has been no significant increase in the past five years. In the past five years, pharmaceutical companies have benefited greatly from the growth of the elderly population. The reason why Japans high-end manufacturing enterprises can achieve better growth is that the Japanese government has tried hard to maintain the weak yen for many years and promote export.

Another noteworthy phenomenon is that when the Japanese stock market peaked in 1990, there were eight Japanese companies in the top ten companies with global market value. At present, only Japan Telegraph and telephone company, Toyota Motor and Sumitomo Mitsui bank are still operating independently, and the remaining five banks are reborn after restructuring.