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The central marketplace for trading stocks, equities, and other securities in Japan, the Tokyo Stock Exchange or the TSE can be an ideal market for Vietnamese investors to start investing in the Asian region. As of March 2023, the Tokyo Stock Exchange had a market capitalization of 743,877 billion Yen, and there were 1,835 prime companies and 1,444 standard companies listed on the exchange
In this article, we take a deep dive into why investing in the TSE is a smart move for Vietnamese investors.
What is the Tokyo Stock Exchange?
Tokyo Stock Exchange is the main stock exchange of Japan where one can trade securities. It lists a wide range of companies across different industries like technology, finance, manufacturing, and automotive. Some of the multinational companies listed on the Tokyo Stock Exchange include Sony, Nippon, Toyota, Mitsubishi, and Softbank Group.
There are two main trading sessions of the TSE when the traders can trade:
- Morning Sessions: From 9:00am to 11:30am
- Afternoon Sessions: From 12:30pm to 3:00pm
Why Vietnamese investors should invest in the Tokyo Stock Exchange
Access to global markets
Being one of the major stock exchanges across the world, the Tokyo Stock Exchange provides Vietnamese investors access to a wide range of companies in Japan. Most importantly, it gives them the opportunity to diversify their portfolio. Since the trading hours of the TSE overlap with major markets in Asia, Europe, and America, it provides even more opportunities for extended trading.
Invest in multiple industries
The Tokyo Stock Exchange allows one to trade companies across multiple industries. The TSE offers diversification to Vietnamese investors with a number of investment opportunities and choices. Vietnamese investors can readily decrease their dependency on the Vietnamese markets and gain more exposure to the global markets by diversifying their investment portfolio with the TSE.
Liquidity
The Tokyo Stock Exchange offers a high level of market liquidity which doesn’t just make it easier for investors to trade stocks on it easily, but it also allows for efficient trade executions since the overall risks of stock price volatility is reduced. There are also multiple companies listed on the TSE with high market capitalization offering vast investment opportunities.
Protection for investors
There is a strong legal framework and strict regulations in place in order to safeguard investors that want to readily trade the Tokyo Stock Exchange. Regulatory bodies like Japan Exchange Regulation (JPX-R) and Financial Services Agency constantly monitor the market to ensure that fair trading practices are being followed by all parties. The goal is to protect international investors and boost their confidence to trade the market.
Why Vietnamese investors should consider trading the Nikkei 225
Nikkei 225 is the benchmark index of the Tokyo Stock Exchange. It is a price weighted index that comprises 225 blue-chip companies which are traded on the Tokyo Stock Exchange.
Nikkei 225 can be a preferred market to trade for Vietnamese investors because of its deep liquidity and low spreads. More importantly, the index gives investors exposure to an entire sector with just one trading position–as opposed to investors trading individual companies on the TSE. The Nikkei index is also considered a good indicator for the market sentiments in East Asia due to the size and position of the Japanese economy.
The main reason why Vietnamese investors should consider the Nikkei 225 is because it can help diversify their investment portfolio in a more efficient manner. While trading individual stocks involves a lot of time and research, Nikkei 225 allows investors exposure to a wide list of Japanese companies with one single position.
Also important to note that Nikke 225 has an inversely proportional relationship with the Yen. So when Yen’s value appreciates, the Nikkei 225 index prices go down–and vice versa.
How to trade the Tokyo Stock Exchange through Nikkei 225
A direct way to trade the Tokyo Stock Exchange is through Nikkei 225 CFDs. By trading CFDs, traders can take up a position on the index without actually taking ownership of the underlying assets.
Here are a step by step guide on trading Nikkei 225 CFDs:
- Go to Blueberry Markets and sign up for a live trading account
- Submit all the required documents and wait for the application to get processed
- Fund the trading account. (Note that there might be a minimum deposit amount required so make sure to check all the terms before funding the account)
- Download a trading software like MT5 and log into it with the same account credentials
- Go to the charting tool and open a new chart. Go to Indices and select JP 225 to start trading Nikkei 225
Final words
Tokyo Stock Exchange can give Vietnamese investors access to global investment opportunities in one of the leading financial markets across the world.
Sign up for a live account or try a demo account to get started.
Disclaimer: All material published on our website is intended for informational purposes only and should not be considered personal advice or recommendation. Traders should carefully consider their objectives, financial situation, needs, and level of experience before entering into any margined transactions. Trading on margin is high risk.
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