{"text":[[{"start":10.75,"text":"Trading volumes on the Tokyo Stock Exchange’s prime market have almost doubled since last year as AI fever and a resurgence of “Mrs Watanabe” retail investors send stocks to record highs."}],[{"start":22.2,"text":"Figures from JPX, which owns the exchange, showed average daily stock trading volumes in the first three weeks of May topped the ¥10tn ($63bn) mark for the first time, as foreign funds and domestic investors bet on Japanese technology companies as the “picks and shovels” winner of both AI and chip wars."}],[{"start":42.9,"text":"The surge in volumes has been accompanied by a rise in off-exchange trading and, according to brokers, given retail investors an unprecedented sway over the market. "}],[{"start":52.3,"text":"Retail’s share of trading on the Tokyo Stock Exchange has been growing steadily over the past quarter of a century, hitting 25 per cent in 2025 — the highest point since Abenomics kicked off a stock market rally more than a decade ago. "}],[{"start":66.25,"text":"However, according to Jefferies, the actual increase in retail investing might still have been underestimated. The TSE data does not take into account the rise of proprietary trading systems — off-exchange venues that are attracting more investor appetite."}],[{"start":null,"text":"
"}],[{"start":81.45,"text":"Oki Matsumoto, the founder of Monex, one of the largest online brokerages, said “AI fever” had gripped Japanese retail investors and drawn them into the market. Retail investors’ activity in the Japanese market, he said, was now at a record high."}],[{"start":96.65,"text":"“The overall direction of the market is still being set by the big institutional investors, but the intraday activity and the volatility are being provided by retail investors,” he said."}],[{"start":108.30000000000001,"text":"Retail trading and volumes on the alternative exchanges combined reached 39 per cent of market volume in April, said Jefferies analysts. Retail trading on proprietary systems in Japan is dominated by Japannext and Japan Alternative Market (JAX), which have relationships with online brokers Rakuten, SBI and Monex. "}],[{"start":128.9,"text":"According to JAX chief executive Takeya Kamei, about half the volume on his exchange is retail. Most of the rest comes from market makers — high-frequency traders who provide the liquidity that makes the venues viable."}],[{"start":142.70000000000002,"text":"The level of retail interest in Japan might be even higher since TSE figures do not include some margin trading by retail, which is captured under its “brokerage” segment. "}],[{"start":152.65,"text":"Analysts warn that there may be some double counting, but the overall data suggests that retail interest in Japan is at levels not seen since the country’s asset bubble in the 1980s."}],[{"start":164.25,"text":"Significantly, the growing number of retail investors in Japan is spurring heightened levels of volatility in a market that asset managers say is already one of the most momentum-driven globally."}],[{"start":175.4,"text":"Traders and analysts say the most recent earnings season has seen stocks punished or rewarded for even minor deviations in expectations."}],[{"start":184.1,"text":"“The increasing amount of retail trading in Japan is a big shift. The market has been international and institutional. Now there are new people at the party and we have seen the effect this earnings season,” said Jeff Hutchins, head of equity trading in Japan at Jefferies."}],[{"start":200.9,"text":"“Any Japanese company that has had positive momentum, particularly in tech and AI, has been hit hard if they downgrade expectations even a bit,” he added."}],[{"start":210.45000000000002,"text":"Stocks including Nitto Boseki, Mitsui E&S, Seikoh Giken, Ajinomoto, Furukawa Electric and Fujikura have all been highlighted as being influenced by retail investors. "}],[{"start":222.55,"text":"Monex’s Matsumoto said big index-tracking exchange traded funds previously attracted the biggest trading volumes by retail. “There are individual, AI-related names like Furukawa and Fujikura that are trading on bigger values. It’s quite remarkable that they are not just buying the market, but are buying individual stocks,” he added."}],[{"start":241.10000000000002,"text":"The rise in retail trading will be welcomed by the Japanese government. It is trying to encourage savers to move cash out of bank accounts and into higher-yielding investments as a way to boost retirement incomes and reflect the rising interest rates in the country. "}],[{"start":256.40000000000003,"text":"A decade ago, trading volumes on the alternative exchanges were in the single digits in Japan, but regulators have put their weight behind the platforms as a way to introduce competition to the trading market. "}],[{"start":267.85,"text":"People in the industry say the impact on trading costs for retail investors has been positive."}],[{"start":273.90000000000003,"text":"While retail participation in the market has been rising, it is notable that — on the Tokyo Stock Exchange at least — retail flows have remained predominantly net selling. That suggests some households are taking advantage of rising share prices to reduce their long-term holdings. "}],[{"start":289.85,"text":"It has long been the case that net buying in Japan is done by foreign institutional investors and domestic corporations."}],[{"start":303.25000000000006,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779687747_1994.mp3"}