TOKYO - The Nikkei was led by the Tokyo Stock Exchange a step closer to lengthening stock trading for the first time in seven decades, to 3: 30 p.m. as early as fall 2024, learned Friday
The proposed 30 minute extension would give investors more opportunities to participate in the internal Japanese market, and enable stock prices to better reflect developments here and elsewhere in Asian markets, according to an internal report by Nikkei.
Japan's current five-hour trading day, which runs from 9 a.m. to 3 p.m. with an hourlong break at 11: 30 a.m. is an outlier between major markets and a significant point of difference as exchanges vie for business
New York is open for six and a half hours, London seven hours and New Jersey eight and a half.
Tokyo aims to boost its status as an international economic center. But even with the extension, Tokyo would have shorter trading hours than these rival hubs, likely making further steps to improve competitiveness necessary.
Change has proved difficult. The TSE considered extensions in the past but failed to reach a consensus among stakeholders.
The latest proposal was discussed in a report submitted Friday by an institutional investors group on improving market functions comprising brokerage and academic investors. No group member objected to extending the day's trading hours by half an hour. Details on how the extension would work in practice still need to be hammered out with the Financial Services Agency and securities industry groups.
The report will be released to the public as soon as this month.