What is 'Samurai Market'

Samurai market is a slang term for the stock market in Japan. The samurai market is usually used by non-residents of Japan, with a reference to the iconic Japanese warrior, the samurai.

BREAKING DOWN 'Samurai Market'

The term "samurai market" originated in business slang, but has become widely accepted, much like the "yankee market" refers to U.S. markets and the "bulldog market" refers to the market in the United Kingdom.

Today, the term usually refers to the the Tokyo Stock Exchangewhich is called Tōshō or TSE/TYO for short. This stock exchange is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies, and largest in Asia. It had 3,619 listed companies with a combined market capitalization of $5.12 trillion, as of March 2018.

In July 2012 a planned merger with the Osaka Securities Exchange was approved by the Japan Fair Trade Commission. The resulting combined entity, the Japan Exchange Group (JPX), was launched on January 1, 2013.

Shares are listed in several sections. The first section, which started when Tokyo Stock Exchange was re-established in 1949, includes mainly large companies; the second section, which started in 1961, includes mainly mid-sized companies. JASDAQ was established in 1991 and acquired by Osaka Stock Exchange in 2010 and absorbed into TSE in 2013. Mothers (Market of the high-growth and emerging stocks) started at TSE in 1999. Mothers and JASDAQ which are for emerging companies. The TOKYO PRO Market was established in 2009 jointly with London Stock Exchange as an AIM.

History of the Samurai Market

The Tokyo Stock Exchange was established on May 15, 1878. Trading began on June 1, 1878. In 1943, the exchange was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange. The combined exchange was shut down and reorganized shortly after the bombing of Nagasaki. The Tokyo Stock Exchange reopened under its current Japanese name on May 16, 1949, pursuant to the new Securities Exchange Act. The TSE's growth from 1983 to 1990 was unprecedented. In 1990, it accounted for over 60 percent of the world's stock market capitalization (by far the world's largest) before falling precipitously in value and rank to 4th largest exchange.

The current TSE building was opened on May 23, 1988, replacing the original TSE building from 1931. The TSE trading floor was closed on April 30, 1999, to switch to electronic trading for all transactions. A new facility called TSE Arrows opened on May 9, 2000. A new Arrowhead trading facility replaced it in 2010.

In 2001, the TSE restructured itself as a stock company. Previously, it was structured as an incorporated association, with its members as shareholders.

  1. Japan Association Of Securities ...

    The Japan Association Of Securities Dealers Automated Quotation ...
  2. Tokyo Stock Exchange (TSE)

    The Tokyo Stock Exchange (TSE) is the largest stock exchange ...
  3. Primary Exchange

    A primary exchange like the New York Stock Exchange facilitates ...
  4. Regional Stock Exchange

    A regional stock exchange is a place outside of a country's primary ...
  5. Tokyo Price Index - TOPIX

    The Tokyo Price Index, often referred to as TOPIX, is a capitalization-weighted ...
  6. Stock Market

    The stock market consists of the exchanges or OTC markets in ...
Related Articles
  1. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  2. Investing

    Stock Exchanges Around The World

    We tell you about five of the most popular stock exchanges from around the globe.
  3. Trading

    The History Of Options Contracts

    Options and futures contracts didn't originate with Wall Street power brokers. They started with rice traders a few centuries ago.
  4. Investing

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  5. Insights

    The Birth of Stock Exchanges

    Learn about the evolution of stock exchanges, from the Venetian states to the British coffeehouses, and finally to the NYSE.
  6. Investing

    Jumping for an Old Japan ETF

    This Japan ETF is topping U.S. stocks this year, but it has some drawbacks.
  7. Insights

    The NYSE and Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  8. Tech

    Why Did Yahoo Japan Buy In To A Crypto Exchange?

    Yahoo Japan has purchased a 40 percent stake in BitARG. It plans to provide "easy to use and safe" services on the exchange.
  9. Investing

    A New Corporate Governance Initiative In Japan

    Expectations are low that Japan can create a corporate governance climate that meets global standards, but a new initiative is aimed at doing just that.
  10. Managing Wealth

    Top Tips For Exchanging Money

    Take these tips to heart to avoid wasting money when you exchange currencies.
  1. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
  2. What does it mean when my broker says that shares are for auction?

    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same ... Read Answer >>
  3. Why are Traders on the Floor of the Exchange?

    Learn how trading on the floor of the stock exchange has evolved over time with computers now managing the majority of buying, ... Read Answer >>
  4. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  5. Trading hours of world's major stock exchanges

    Learn about stock exchange trading hours, the opening and closing times of some major global stock market exchanges, and ... Read Answer >>
Trading Center