Japan - Stocks traded, turnover ratio of domestic shares (%)

The value for Stocks traded, turnover ratio of domestic shares (%) in Japan was 94.33 as of 2020. As the graph below shows, over the past 45 years this indicator reached a maximum value of 567.38 in 1978 and a minimum value of 26.89 in 1992.

Definition: Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12.

Source: World Federation of Exchanges database.

See also:

Year Value
1975 42.46
1976 50.95
1977 477.59
1978 567.38
1979 57.51
1980 47.52
1981 61.36
1982 41.95
1983 49.86
1984 49.70
1985 47.99
1986 64.81
1987 73.88
1988 67.11
1989 61.24
1990 52.61
1991 34.30
1992 26.89
1993 31.30
1994 29.77
1995 32.28
1996 39.38
1997 49.98
1998 42.86
1999 45.53
2000 78.58
2001 75.16
2002 83.73
2003 78.83
2004 97.19
2005 94.86
2006 119.17
2007 152.07
2008 199.27
2009 117.00
2010 111.56
2011 129.62
2012 96.19
2013 133.90
2014 110.66
2015 113.82
2016 105.44
2017 92.84
2018 119.02
2019 82.34
2020 94.33

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 domestic shares are used in order to be consistent with domestic market capitalization.

Statistical Concept and Methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.

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