Economy Rising stock gains reach few Japanese

[thomas]

As the Nikkei stock index continues to surge to record highs, surpassing the peaks set in 1989, investment is once again capturing attention in a country that has traditionally favoured the safety of savings. However, unlike the stock-buying frenzy that attracted many during the peak of the bubble economy over three decades ago, most Japanese are remaining on the sidelines this time. They see little benefit from rising share prices, especially as they grapple with higher inflation and falling real wages. Interestingly, those investing now seem partly motivated by economic anxiety, starkly contrasting the optimism that characterized the previous investment boom.

Reflecting the growing interest in investment among Japanese citizens, a staggering 900,000 new accounts were opened at Japan's major online brokerages in January alone, as reported by Kubota Tomoichiro, senior market analyst at Matsui Securities Co. The introduction of the new NISA program has significantly expanded the investor base, with most NISA account holders being individuals who had never previously ventured into stock investment. However, despite this surge in interest, only 14.2 per cent of NISA accounts, particularly those allowing investment in individual stocks under the "growth framework," have been actively utilized as of March 1. Interestingly, the recent surge in the Nikkei index beyond the 40,000 threshold is primarily driven by overseas investors.

The percentage of shares held by individual investors in listed companies on the Tokyo Stock Exchange in fiscal 2022 dropped to 17.6 per cent from 20.4 per cent in fiscal 1990. In contrast, the proportion of shares held by foreign institutional investors surged to 30.1 per cent from 4.7 per cent in the same period, according to the TSE. Underscoring the reluctance of Japanese people to invest in equities, only about 15 per cent of household financial assets were held in stocks and investment trusts as of the end of March last year, far behind 51 per cent in the United States and 31 per cent in Europe, Bank of Japan data showed.

Gains from rising stocks proving elusive for most Japanese - The Mainichi

TOKYO (Kyodo) -- As the Nikkei stock index keeps soaring to record highs above the peaks marked in 1989, investing is once more drawing interest in a

mainichi.jp

 

[Mikawa Ossan]

I had a colleague who tried his hand at day trading back in the naughties...he didn't do very well. He would have been better served by buying an index fund, as I suspect is true for most people trying out the stock market.