The Japanese Stock Market is the second biggest in the world and the largest in Asia.But the Japanese Stock Market is going through a three year low at the moment on some measures.The market has hardly made any forward movement and the Japanese equities are facing a very tough time in the present financial year.
After last years hike around 40 percent the market has only gone downwards.
The main reasons are:
The growth in corporate earnings are slowing-down.
Consumptions are reducing in domestic sphere.
Banks not showing enough promise to save the lacklustre economy.
Things are thus becoming more expensive than what they deserve to be in Japan. According to a survey company, Japan has become nearly 20 percent more expensive than the world market.
Another problem for the Japanese Stock Market is the downing price of Yen,compared to other currencies. It has become a catch 22 situation for those who still believe that Yen would turn out fine, find it hard to invest is suitable stocks in the lacklustre Japanese Stock Market.
The Japanese Stock Market is on a low can be seen through the rate of progression in the last few years. The Japanese Stock Market used to capture one third of the total world market during 1990s. But now it captures one tenth of the total world Stock Market.Though it is true that it is still a very big market with a market capitalization of US$4116bn dollars.
Another thing that is worrying the Japanese economists is that the foreign listed companies are leaving Japanese Stock Market.In Tokyo Stock Exchange the number of foreign listed companies are about 25 whereas in 1990s it was nearly 125.