Tokyo Financial Center Impact on Japanese Economy

Tokyo Financial Center impact on Japanese Economy:

Tokyo Financial Center is composed by the Tokyo Stock Exchange, the Central Bank of Japan, Regulation and supervision institutions,

As a financial Center, Tokyo deeply impacts on the Japanese economy. That impact can be measured in terms of macroeconomic data and also in relation to the financial markets.

What is the impact of financial markets in economic growth?...

Real economy, job economy,

Global economy ability to grow

When financial markets

A)

b)

Tokyo Stock Exchange (TSE)

According to the Japanese Exchange Group*, TSE operates in five different financial markets: What Japanese and worldwide investors know as the First Section, the Second Section, the Mothers, JASDAQ and TOKYO PRO Market.

First Section and Second Section

The First and Second Sections represent the main markets of TSE where leading large and second tier Japanese and foreign companies are listed. First section is composed by mostly all 225 Niikkei Index listed companies

Mothers offers a trading market for companies with growth potential which aim to be reassigned to the First Section in near future. As the objective of Mothers is to offer financing opportunities for many companies with growth potential, Mothers has no restrictions on the size or business category of applicants. After successfully listing their stock on Mothers, many have satisfied the criteria for reassignment to the First Section and listed their stock on the First Section.

JASDAQ is a market characterized by the three concepts of (1) reliability, (2) innovativeness and (3) region and internationalization. JASDAQ is split into the "Standard" market for growth companies with a certain size and business performance and the "Growth" market for companies with stronger future growth potential and unique technologies or business models.

TOKYO PRO Market was established based on the "Professional-oriented market system" introduced in an amendment to the Financial Instruments and Exchange Act in 2008. In TOKYO PRO Market, exchange-approved J-Advisers conduct listing examination of prospective companies and offer post-listing support in place of the exchange. 

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Explain what is ipo, and the importance of the 1st section over other sections..

TSE is the main stock exchange in Japan, according to data from the Japan Exchange Group monthly statistics reports,

Nikkei covers the major stocks on Japanese market, it is an index that is listed at the TSE. It is a price-weighted index composed of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange.

All Japanese Stock exchanges amounted for a trading value of 741.740.113 Y mil, and TSE had 99,9% of all that amount*. So for now on, when it is talked about Japan Stpock exchange, all value comes from Tokyo

That is big impact on the economy, because TSE promotes economic growth while allows to address investment to  the different Japanese operating sectors.

The most essential companies are listed at the TSE and they are also part of the Nikkei 225 Index. These companies employ a large quantity of Japanese people and also bring prosperity in terms of wages and development to the region of Tokyo.

Enterporise profits....

What are the impacts of TSE in the economy?

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NIKKEI 225 covers representative stocks of the mayor industrials sectors in Japan.

So other regions from Japan benefit from the profits they made in TSE. Because an increase in value or a good performance of any of these stocks transale into good results to the companies and thus, economic growth to the regions they are located.

67 year Evolution of Nikkei 225 since 1950.

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It is appreciable a great rise since 1950 until 1987. From 1987 to nowadays Nikkei 225 followed a downward trend but at a slower pace than the former period.

The critical point of the chart was the one in 1987, and the resistance against the growth of the Nikkei 225 index. That change of trend was due to the 1987 crash.