Country Details

The Tokyo Stock, which is called Tosho or TSE/TYO for short, is a stock exchange located in Tokyo, Japan. It is the third largest stock exchange in the world by total market capitalization of its listed companies, and the largest in Asia.

The exchange was first opened in 1878 to provide a market for trading government bonds that had been newly issued to former Samurai. At first, government bonds, gold, and silver currencies formed the bulk of the exchange’s trade, but, with the growth and modernization of Japan’s economy, trading in stocks had come to predominate by the 1920s.

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

It had 2,292 listed companies with a collective market capitalization of US$5.67 trillion as of February 2019. The valuable stocks of the country are:

• NINTEND
• SOFTBNKG
• TOYOTA
• TKOELCN
• FASTRET

Total listed companies: 3,511

Economic Crisis 2008:

The global financial crisis in 2008 and 2009 hit Japan hard, the Tokyo Stock market crashed. The Japanese economy shrunk 3.3% in fiscal 2008. The trade debt hit ¥223 billion in November 2008 and reached a record of ¥952.6 billion in January 2009. Exports fell almost 50% in February 2009 as demand for Japanese cars and electronics plunged.

The Bank of Japan offered ¥1 trillion in loans to banks to encourage them to lend money. They increased its purchase of government bonds by nearly 30% to pump more money into the economy. The growth figures dropped dramatically in late 2008 and early 2009, then recovered quickly.

The Lost Decade (1991-2001):

The Lost Decade or the Lost 10 Years was a period of economic stagnation in Japan following the Japanese asset price bubble's collapse in late 1991 and early 1992. While the Japanese economy discontinued this period, suffered from both a credit crunch and a liquidity trap, it did so at a speed that was much slower than other industrialized nations. The country endured low growth and deflation, while the Japanese stock markets hovered near record lows, and the property market never fully returned to its pre-boom levels.

This period finally came to an end in 2002 and took around 10 years to pull up the economy.

Japan was settled about 35,000 years ago by Paleolithic people from the Asian mainland. At the end of the last Ice Age, about 10,000 years ago, a culture called the Jomon developed. Jomon hunter-gatherers fashioned fur clothing, wooden houses, and elaborate clay vessels.

The second wave of settlement by the Yayoi people introduced metalworking, rice cultivation, and weaving to Japan.

The first period of logged history in Japan is the Kofun (A.D. 250-538), which was described by large burial mounds or tumuli. The Kofun were led by a class of aristocratic warlords, who implemented many Chinese customs and innovations.

Buddhism came to Japan during the Asuka period, 538-710, as did the Chinese writing system. At this moment, society was divided into tribes. The first strong central government developed during the Nara period (710-794). The aristocratic class practiced Buddhism and Chinese calligraphy, while agricultural villagers followed Shintoism. Japan's distinctive culture developed rapidly during the Heian era (794-1185). The imperial court rolled out persevering art, poetry, and prose. And the samurai warrior class developed at this time as well.

Samurai lords, called "shogun", took over the government in 1185, and ruled Japan in the name of the emperor until 1868. The Kamakura Shogunate (1185-1333) ruled much of Japan from Kyoto. Facilitated by two extraordinary typhoons, the Kamakura repulsed attacks by Mongol armadas in 1274 and 1281.

An exceptionally strong emperor, Go-Daigo, tried to dethrone the shogunate in 1331, following in a civil war between rival northern and southern courts that finally ended in 1392. During this time, a class of strong regional lords called "daimyo" expanded in power; their rule lasted through the end of the Edo period, also known as the Tokugawa Shogunate, in 1868.

That year, a new statutory realm was established, headed by the Meiji Emperor. The power of the shoguns came to an end. After the Meiji Emperor's death, the emperor's son became the Taisho Emperor. His chronic illnesses kept him away from his duties and allowed the country's legislature to introduce new democratic reforms.

During World War I, Japan formalized its rule over Korea and seized control of northern China. The Showa Emperor, Hirohito, oversaw Japan's aggressive expansion during World War II, its surrender, and its renaissance as a modern, industrialized nation.

The occupation of Japan by the Allied Powers started in August 1945 and ended in April 1952. General MacArthur was its first Supreme Commander. And now Shinzō Abe is the Prime Minister of Japan and President of the Liberal Democratic Party, since 2012.

Famous People

Yen (¥), primary currency of Japan. The yen was divided into 100 Sen and into 1,000 Rin until 1954, when these tiny denominations were removed from circulation.

The origin of Japanese currency can be tracked to the Wu Zhu bronze coin of China, which was launched under the Han Dynasty around 221 BC. Until the 8th Century the Japanese imported such coins from China. However, in 708 the Japanese government began minting their own silver and copper coins called the Wado Kaichin or Wado Kaiho, which imitated the Chinese Kai Yuan Tong Bao coin’s size, shape, and weight.

Approximately 250 years later, due to the economic decline they couldn’t mint their own currency. Therefore, begun to import Chinese currency again for over next few centuries. The Chinese currency was unable to fulfill the demand for a monetary medium that resulted from the growing trade and economic expansion. To meet the market demand two privately minted Japanese coins Toraisen and the Shichusen entered circulation (14th-16th Century).

Under the rule of Toyotomi Hideyoshi (Edo Period), gold coinage was made into a standard currency. The Tokugawa Shogunate Government then established a unified monetary system that consisted of these gold coins in addition to silver and copper.

Minting took place in the Kinza, where the present head office of the Bank of Japan now stands. Although some paper currency had been launched earlier around 1600, it was not until the Meiji Restoration that the first nationally accepted paper money was formed.

The Meiji Government wanted to streamline and centralise all the various coins (holding different values) that came about under the Edo Period. The New Currency Act developed a monetary system like that of European countries, and made a decimal accounting system of Rin, Sen, and Yen. Thus, the gold standard was adopted, and the round-shaped Yen replaced the previous gold and silver coinage.

First minted in 1869, after the Meiji Restoration, the yen was officially adopted as the basic unit in the monetary reform of 1871. In that year the government suspended the exchange of clan notes, paper money that feudal lords had issued and circulated since the late 16th century. By 1879 the replacement of clan notes by the yen-based government notes had been completed.

Banknotes are issued in denominations ranging from 1,000 to 10,000 yen. The obverse of each note contains an image of an important cultural figure in Japanese history. Coin denominations range from 1 to 500 yen.