Japan - Stocks traded, total value (% of GDP)

Stocks traded, total value (% of GDP) in Japan was 125.30 as of 2020. Its highest value over the past 45 years was 143.80 in 2007, while its lowest value was 11.55 in 1975.

Definition: The value of shares traded is the total number of shares traded, both domestic and foreign, multiplied by their respective matching prices. Figures are single counted (only one side of the transaction is considered). Companies admitted to listing and admitted to trading are included in the data. Data are end of year values.

Source: World Federation of Exchanges database.

See also:

Year Value
1975 11.55
1976 15.72
1977 14.25
1978 19.14
1979 15.76
1980 16.30
1981 21.04
1982 15.43
1983 21.89
1984 24.29
1985 32.53
1986 55.60
1987 79.53
1988 82.79
1989 85.41
1990 49.18
1991 28.76
1992 15.51
1993 20.42
1994 21.40
1995 20.64
1996 24.15
1997 23.20
1998 25.51
1999 43.76
2000 49.94
2001 38.90
2002 41.42
2003 51.51
2004 70.66
2005 89.78
2006 119.49
2007 143.80
2008 121.58
2009 73.13
2010 74.15
2011 69.15
2012 53.35
2013 116.71
2014 98.93
2015 125.35
2016 104.53
2017 117.19
2018 125.16
2019 99.01
2020 125.30

Development Relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations.

Limitations and Exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only EOB trades are included in the total value of shares traded.

Statistical Concept and Methodology: The value of shares traded represent the transfer of ownership effected automatically through the exchange's electronic order book (EOB), where orders placed by trading members are usually exposed to all market users and automatically matched according to precise rules set up by the exchange, generally on a price/time priority basis. For data before 2001, the WFE used two different approaches for the collection of trading data, depending on the individual stock exchange's market organization and rules. The first approach is the Trading System View (TSV). Stock exchanges adopting this view count only those transactions which pass through their trading system or trading floor. The TSV is generally adopted by exchanges which operate a centralized order book (order-driven market). Trades done by their members off the exchange are not included. The second approach is the Regulated Environment View (REV). Stock exchanges in this category include all transactions subject to supervision by the market authority, including transactions made by members, and sometimes non-members, on outside trading systems and transactions into foreign markets. Figures reported under the REV approach will be higher than those reported under the TSV approach.

Aggregation method: Weighted average

Periodicity: Annual

General Comments: Stock market data were previously sourced from Standard & Poor's until they discontinued their "Global Stock Markets Factbook" and database in April 2013. Time series have been replaced in December 2015 with data from the World Federation of Exchanges and

Classification

Topic: Financial Sector Indicators

Sub-Topic: Capital markets