After Japan’s stock market surge in 2024, demand for infrastructure is increasing
Published by Colt Technology Services on February 19, 2025
Written by Russell Toop, Team Leader of Colt’s Asian Capital Market Solutions
2024 was Japan’s stock market knockout year with the TSE Prime Market achieving a historic milestone with a trading value of JPY 1,254.2334 trillion. The weaker yen further stoked interest, particularly in Japan-focused exchange-traded funds (ETFs), creating robust demand for the Nikkei 225 ETF and the Topix ETF.
Meanwhile, corporate reforms, promoted by the public and private sectors, continue to help Japan become a stronger asset management centre. Measures include more accessible markets and easier entry for global players into the financial industry. The four tailored business zones announced in June 2024 are Sapporo, Tokyo, Osaka, and Fukuoka, specifically for asset management businesses for which administrative procedures can be completed solely in English.
Corporate reform is driving new opportunities for global players
Japan is experiencing a market uptick and significant corporate reforms that enhance its stature as a premier asset management centre. These initiatives, promoted by both the public and private sectors, include measures to make markets more accessible and to streamline global players’ entry into Japan’s financial industry.
One of the most exciting developments is the planned establishment of tailored business zones, specifically for asset management. These zones will facilitate administrative procedures in English, significantly lowering barriers for foreign investors and firms looking to enter the Japanese market.
As companies look for new ways to transform and thrive, these opportunities require the right infrastructure approach.
Balancing global and local
Firms looking for opportunities in the Japanese market need access to high-speed data feeds for a variety of asset classes such as equities, derivatives, commodities, and foreign exchange (FX), as well as the right balance of local knowledge and global capability.
Colt’s investment and heritage in Japan
Today, tier 1 sell-side institutions, buy-side participants, technology vendors, and international exchanges rely on Colt’s trusted capabilities, including our specialist knowledge and support. They leverage our ultra-low latency network to connect to a wide financial ecosystem across multiple asset classes and geographies.
Our ultra-low latency (ULL) and colocation hosting services form the backbone of the trading infrastructure, supporting major exchanges like the Japan Exchange Group. Our strong partnership makes us one of the leading connectivity partners, with over 80% of foreign JPX trading participants using our services and connectivity.
The land of rising opportunities
As Japan’s stock market continues to thrive amidst these changes, domestic and international investors are taking note. With strong government support, innovative corporate reforms and strategic investments in technology and infrastructure, Japan is poised for sustained growth in the asset management sector. With the right local partner, the opportunities are impressive.
You can discuss your opportunities for your business in Japan by reaching out to our specialist sales teams.
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