how to buy stock in japan

Companies that derive most of their revenue overseas — such as Canon (symbol CAJ, $35), the camera producer, and tire maker Bridgestone (BRDCY, $72) — will see an immediate lift to earnings because of the weaker yen (prices are as of April 5).

In March, the 70-year-old retiree concluded the rally was for real, and jumped in aggressively for the first time since the 2008 financial crisis.
TOKYO—As Japanese stocks soared through the early weeks of this year, Hiromichi Kobayashi sat on the sidelines, expecting the inevitable pullback.
"The average fund manager," he says, "would rather suck a lemon than invest in Japan." I remember meeting Bennett for lunch in London 12 years ago.
Over the past 20 years, real output per worker in Japan has grown nearly as fast as that in the U.S. And while net government debt has rocketed to an unsustainable 130 percent of GDP, companies and households are in great financial shape.
How are the mighty fallen! Twenty-two years ago, Japanese stocks accounted for nearly half the value of the world’s stock markets.
"There are literally hundreds of stocks like this in Japan," says Josh Strauss, comanager of the Appleseed mutual fund.
Studies show over and over again that in a rising market, a low-cost index fund will beat most "active" stock-picking fund managers.
But he recently wrote to clients that Japanese equities "are absolutely as well as relatively good value." He suspects Japanese firms actually underreport their profits, because their accounting methods are particularly conservative.
The Nikkei 225, Japan’s major stock market index, trades at just 10 times forecast earnings.
Rather than settle your trades in U.S. dollars and pay a foreign currency exchange fee on each transaction, you could do a single, larger currency exchange transaction of your U.S. dollars into Hong Kong dollars.* This would allow you to settle each trade in the local currency, Hong Kong dollars, which may allow you to potentially reduce your overall trading costs.
Price movements for currencies are influenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the marketplace.
If you choose U.S. dollars as the settlement currency for your international stock trade, a foreign currency exchange fee (in the form of a markup or markdown) based on the size of the currency conversion will be charged when the foreign currency exchange executes.
If you settle in U.S. dollars, a “linked” foreign currency exchange order will automatically be executed when your stock trade order fills entirely, or at the end of the trading session if your order fills partially.
With international trading, most common stocks and exchange-traded funds (ETFs) listed in Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, and the United Kingdom are available to trade online directly in the local market.
If you plan on trading regularly in a specific market, you may want to consider exchanging a certain amount of currency to avoid currency exchange fees on each trade.
You must have sufficient U.S. dollars (displayed as Cash Available to Buy Securities) or 100% of the foreign currency needed to place an international stock order.
Once entered, international stock and currency exchange orders are displayed on the Orders page along with your domestic security orders.
Currency trading is when you buy and sell currency on the foreign exchange (or Forex) market with the intent of benefitting financially from the fluctuation in exchange rates.
When using Foreign Ordinary Share Trading to trade Canadian stocks, orders are routed to brokers in Canada and are not executed by U.S. market makers.
At the time of a trade for an international stock, you can choose to settle the trade in U.S. dollars or in the local currency.
Why settle for buying Japanese small-cap stocks on the cheap, when we can buy them cheaper still? Well, we can do just that with this closed-end fund that I recently recommend to WSD Insider subscribers.
As an added bonus, the ETF pays a modest dividend of about 2.4%. So we’ll get paid to wait if Japanese stocks trade sideways for a little while.
You see, most Japan funds – or Japanese stocks trading on U.S. exchanges – are denominated in dollars.
Long story short, if we buy Japanese stocks and don’t hedge our currency exposure, we’re asking for trouble.
So when you buy the fund, the manager exchanges your dollars into yen to purchase stocks in Japan.
It’s worth noting that six of the fund’s top 10 holdings are also top 10 holdings in the more popular iShares MSCI Japan Index Fund (NYSE: EWJ).
And when you decide to sell the fund, the manager sells those stocks and exchanges the proceeds from yen back into dollars.
First, it provides exposure to some of the largest dividend paying Japanese stocks.
If you don’t have the time or inclination to study individual Japanese stocks, but just want exposure to the Japanese stock market in general, try these.
It hardly engenders the public’s faith in the Japanese stock market to have some of its most newsworthy stocks unbuyable by normal investors.
Their commissions are much higher, of course, but most employ English speakers, their information and research is superior, and they will give you more help on the steep (and treacherous) learning curve of Japan stock trading.
We have assumed the reader has some knowledge of US stock investing both online and off, but little knowledge of Japanese stocks.
When I started investing in the Japanese Internet, there were basically two publicly traded stocks (Softbank and Yahoo Japan); now there are 15 to 20, and in a couple of years there will be 200 to 250.
Obviously there are numerous Japanese investment trusts and US mutual funds covering Japan, but in this article, we are focusing on investors who manage their own investments.
Perhaps the best US-listed proxy for the Japanese market is the World Equity Benchmark, EWJ, which trades just like a stock — it can be bought and held, day traded, short or long.
Until recently the minimum trading unit for most Japanese stocks was 1,000 shares.
Broker’s screens differ, but basic inputs are the four-digit stock code (which is used in Japan instead of letter-based ticker symbols like MSFT), buy or sell, how many, and at what price.
The basic mechanics of trading Japanese stocks are similar to overseas.
The Japanese stock market has a remarkable history, and its booms and busts have had global economic and political repercussions.
When you buy a Japanese stock you have two choices: (1) you pay 1.05 percent immediately regardless of what ultimate direction the stock goes, or (2) you pay 26 percent of your capital gains, if any.
It can be frustrating: Many individual investors know — or think they know, anyway — that a golden era in Japanese Internet stocks has begun.
The exchanges consist of the TSE 1st and 2nd sections, the OSE (Osaka Stock Exchange), assorted regional exchanges like the Nagoya and Sapporo, the Jasdaq or OTC, the much heralded Mothers, and a Green Sheets market which is vaguely similar to the US pink sheets.
Eventually, as some of the archaic restrictions are dropped, such stocks will one day do a 1:1,000 or even 1:10,000 stock split, increasing liquidity and becoming buyable by normal investors.
Most offer fairly comprehensive news, information, and research and charting capabilities, although, like the US-based online brokers, their services are limited to keep costs low.
Whilst designed to curb speculation, it is becoming a more prevalent occurrence for stocks to "lock limit" up or down, especially as more Japanese Net stocks go public.
The ultra high-priced shares like Yahoo Japan and Internet Research Institute trade in 1-share units.
Unlike the US experience, where the traditional brokers were slow to offer online trading, these have all offered Internet trading for the past couple of years.
The Tokyo Stock Exchange (TSE) is the principal Japanese stock market and is one of the world’s largest, listing over 2,000 Japanese companies in addition to several dozen foreign companies.
Listed Company Information Company Announcements Service Company Search Search for corporate governance information New Listings Section Transfers Securities Under Supervision & Securities to Be Delisted Status of issues which have entered a grace period, etc.
Last year, writing about Japan’s bid for the 2020 Olympics, I wrote that if you considered Japanese stocks a viable investment, you should “close your brokerage account, withdraw the cash balance in a duffel bag, then douse it in gasoline and set it on fire.
The Japanese bond market has been quiescent, and yields remain ridiculously low given the macro risk that Japan presents.
The iShares MSCI Japan ETF (NYSEARCA:EWJ), the most popular Japan ETF, is down a more modest 9%, due in part to currency effects (the yen tends to rally during “risk off” market conditions).
Aside from my belief that the Olympic are of questionable economic value to the host country, I consider Japanese stocks and the yen to be long-term shorts for two related reasons: debt and demographics.
While I’m open to the occasional short-term trade, I am definitely what you would call a Japan perma-bear — you won’t find me recommending the EWJ any time soon.
(November 2012) Tokyo Stock Exchange 東京証券取引所 Type Stock exchange Location Tokyo, Japan Coordinates 35°40′57.60″N 139°46′43.71″E / 35.6826667°N 139.7788083°E / 35.6826667; 139.7788083 Founded 1878 Owner Japan Exchange Group, Inc.
"Japan’s Tokyo Stock Exchange is the second largest stock market with a market value of $3.3 trillion".
The Tokyo Stock Exchange (東京証券取引所, Tōkyō Shōken Torihikijo?), which is called Tōshō (東証?) or TSE for short, is a stock exchange located in Tokyo, Japan.
Mizuho failed to catch the error; the Tokyo Stock Exchange initially blocked attempts to cancel the order, resulting in a net loss of US$347 million to be shared between the exchange and Mizuho.
It is the third largest stock exchange in the world by aggregate market capitalization of its listed companies.
The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo (東京株式取引所) under the direction of then-Finance Minister Okuma Shigenobu and capitalist advocate Shibusawa Eiichi.
The Tokyo Stock Exchange closed early on January 18 due to the trade volume threatening to exceed the exchange’s computer system’s capacity of 4.5 million trades per day.
The main trading room inside TSE Arrows of the Tokyo Stock Exchange, where trading is currently completed through computers.
The Tokyo Stock Exchange reopened under its current Japanese name on May 16, 1949, pursuant to the new Securities Exchange Act.
"Tokyo Stock Exchange plans cash settlement in Mizuho fiasco – report".
External links[edit] Wikimedia Commons has media related to Tokyo Stock Exchange.
"Tokyo Stock Exchange Buys 4.99% of Singapore Exchange (Update2)".
"What’s Going on at the Tokyo Stock Exchange – Seeking Alpha".
In 1943, the exchange was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange (ja:日本証券取引所, Nippon Shōken Torihikisho?).
Tokyo Stock Exchange.
The London Stock Exchange (LSE) and the TSE are developing jointly traded products and share technology, marking the latest cross-border deal among bourses as international competition heats up.
So as you can see it could be hard to trade and invest directly during the trading hours of the local Japan equity market and monitor real-time international quotes of Tokyo’s equity market.
These international ETFs represent good ways to invest in the Japanese stock market for USD based investors.
These exchange traded funds track several different indexes of Japan’s stock market.
It is possible to trade or invest in the Japanese equity market several different ways these days.
Good online trading brokers like Interactive Brokers or SaxoBank allow you to select a ticker for any Japanese index or Japanese market symbol.
There are already good stock market brokers that offer access to international equity markets from single broker software.
Japan’s stock market trading hours are very different from US trading hours or European trading hours.
It is important to know that direct investment into Japanese stocks on Japan’s stock exchanges is done in local currency – the Japanese yen.
So it is also possible to place orders and buy and sell stocks also on Japanese equity market.
Tokyo’s stock market could be an ideal way to invest in some specific stocks that are leaders in their industry.
The time zone for the Japanese stock market is well shifted.
But manufacturing is actually only 20% of Japan’s GDP.  For the much larger non-manufacturing part of the economy, and non-listed companies, the picture can be, and indeed, is much different.  The article cites a Mizuho Bank study calculating that while a 10 yen per dollar drop in the yen raises listed company profits by JPY 1.9 trillion, it reduces profits of non-listed companies by JPY 1.2 trillion.
In 2010, it began buying ETFS as a measure against “extreme stock price declines.”   Although no longer buying individual stocks, EFT buying has doubled from JPY 500 billion to JPY 1 trillion since Kuroda launched his “different dimension” QE program in April 2013.
By March 31 this year BOJ had accumulated a portfolio of stocks with a market value of JPY 6.15 trillion.  With additional buying since then, and market price rises, BOJ will end the year with a Japanese equity portfolio exceeding JPY 7 trillion.
The article points out how looking at Japan’s stock market can be deceptive when judging the real economy effects of yen devaluation.  A weaker yen has certainly boosted earnings, and stock prices, for many listed companies.
The Nikkei article notes that BOJ’s portfolio is now equivalent to about half the JPY 15 trillion in net buying by foreigners during last year’s celebration of “Abenomics.”  BOJ selling could dramatically move the market.
On September 16, questioned about the negative effects of a weaker yen while speaking to a business group in Osaka,, Kuroda avoided suggesting that yen depreciation is “bad,” saying said only that BOJ is working to ensure exchange rate “stability.”  Speaking later to the press, he stated plainly that yen depreciation is “natural” and is not “negative” for the Japanese economy.
Kikuchi thinks that Japanese firms’ generally strong October-December results have been largely discounted in stock prices, but momentum will power more gains in January.
What are some major “themes” for the 2014 Japanese market? One will be the winners and losers from the consumption tax rise: i.e., those firms that will be able to pass on the tax rise, preserving margins, and those unable to do and suffering margin compression.
Suffice it to say that investing in Japanese equities makes sense for the medium to long term investor seeking both market and currency diversification, as well as ownership of some of the world’s most competitive, technologically advanced companies.
Fortunately for most foreign investors (and particularly ADR investors) their Japanese stock picks have appreciated a multiple of the exchange loss percentage because JPY depreciation helped to produce often record-beating profit gains for the companies.
Kikuchi thinks the current market is discounting the first quarter slowdown and will move higher after spring.
Asked about the NISA accounts, Kikuchi said that both domestic and foreign institutions will be watching carefully how this new vehicle impacts the market.
Nikkei Online on December 13 poses this question to Kikuchi Masatoshi, chief equity strategist of Mizuho Securities.
Rob Aspin, the head of Global Equity Investment Strategy at Standard Chartered Bank, said he is currently neutral on Japan stocks, but also sees 14,500 on the Nikkei as an attractive level to re-enter the market.
"We’re neutral the Japanese market at the moment, one needs to see the emerging markets story unfold further," Aspin said, noting that continued concerns over the outlook for emerging markets may fuel a further rise in the yen, which would be negative for Japanese stocks.
We forecast earnings per share (EPS) growth of 19 percent for Japanese equities in 2014, the highest of all, followed by European equities at 14 percent," the bank said in a report earlier this month.
The Japanese investment bank deems Nikkei at 14,500, which marks a further downside of more than 3 percent from current levels, a good entry point for investors.
Investors looking to up their exposure to Japanese equities may be in luck, with the market approaching attractive levels, according to equity strategists.
Unless dollar-yen drops below 100 and the yen begins to appreciate again, we do not expect the underlying bull trend in Japanese equities to change," Hiromichi Tamura analyst at Nomura wrote in a note on Monday.
Japan has been seen as an off-limits arena for years, and recent news like disputes with China, a tsunami, a fairly inept government, weak GDP growth, and swelling sovereign debt have only stoked the flames of worry.
The smartphone race has become a two-horse competition between Samsung (PINK:SSNLF) and Apple (NASDAQ:AAPL), the advent of has made movies and television a tricky business, and consumer electronics are almost entirely a commodity now that South Korea and China are entrenching themselves into the electronics market .
While it might not be a household name to American investors, that doesn’t mean Mizuho Financial Group (NYSE:MFG) isn’t a huge name in Japan.
Japan was supposed to be in a heap of trouble, still shaking off the impact of 2011’s tsunami (and subsequent nuclear reactor meltdown), and still struggling with a turbulent relationship with its biggest trade partner, China.
One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you’ll be notified of major events affecting your stocks and/or funds with daily email alerts.
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Kubota Corporation is the third attractive pick, with a Zacks Rank #1 (Strong Buy).
While Honda carries a Zacks Rank #2 (Buy), Toyota holds a Zacks Rank #1 (Strong Buy).
Following Prime Minister Shinzo Abe’s aggressive monetary easing measures, Japanese stocks were on a six-month-long rally.
We suggest three such picks, all of which hold good Zacks Rank.
A sustained policy of monetary easing had been the key instrument of Abe’s policy, popularly known as “Abenomics.” The idea behind was that it would boost markets as investors gained confidence.
The fund would need to buy 3.5 trillion yen of domestic stocks to reach the 20 percent target, according to calculations by Bloomberg based on the June figures released last week.
GPIF is expected to increase Japanese shares to 20 percent of holdings and reduce domestic bonds to 40 percent, according to a Bloomberg News survey in May.
GPIF has a 60 percent target for domestic debt and 12 percent for Japanese stocks, with 8 percent and 6 percent deviation limits respectively for those assets.
The value of the Government Pension Investment Fund’s local stocks rose 5.4 percent in the April-June period as the retirement-savings manager earned a 5.1 percent return on the assets, according to an Aug.
GPIF earned 0.7 percent on its Japanese debt, the same return as on a gauge of the nation’s sovereign bonds compiled by Bloomberg.
GPIF posted a return of 1.8 percent in the quarter as its holdings swelled to 127.3 trillion yen ($1.2 trillion), after a 0.8 percent loss in the period through March.
The Topix index jumped 5 percent last quarter as investors speculated on the timing and size of the fund’s purchases, after slumping 7.6 percent in the three months through March.
Foreign stocks accounted for 16 percent of the fund’s assets at the end of June, bringing total equity holdings to a third of the fund’s investments.
Yasuhisa Shiozaki, deputy policy chief of the ruling Liberal Democratic Party, said last month that GPIF should fix its governance before altering its portfolio.

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