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Tokyo Stock Exchange (Japan Exchange Group)

May 1878; JPX since 2013· Institution or agency

Fact, law or dataA rule, statute, definition or measured number.

Japan's main stock market, founded in 1878 and part of Japan Exchange Group since its 2013 merger with Osaka's exchange.

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How it works

The TSE opened in May 1878 and today lists about 3,900 companies, among the world's five largest exchanges by value. Japan Exchange Group (JPX) formed in January 2013 when it merged with the Osaka exchange, which now handles derivatives such as Nikkei 225 futures. In April 2022 the TSE split into Prime, Standard and Growth tiers. In March 2023 it asked Prime and Standard companies, especially those trading below book value, to publish plans to raise returns, a push behind record buybacks.

Why it matters

The 2023 governance push and Buffett's trading-house bets drew foreign money back to Japan and helped the Nikkei pass its 1989 peak in 2024.

Facts, rules and data

JPX listing statistics, its March 31, 2023 request on 'management that is conscious of cost of capital and stock price', company disclosures, and buyback tallies from Nikkei and brokers.

Debates and risks

Whether the gains are lasting reform or a cyclical burst: by one count about 38% of big TOPIX 500 firms still traded below book value in late 2024.

Inside this (1)

Connections (2)

▸Tokyo Stock Exchange (Japan Exchange Group) pushed low-valued firms in 2023 toward more Dividends and stock buybacksFact, law or data

The connection

In March 2023 the TSE asked Prime and Standard companies, roughly half of which traded below book value, to show plans to improve capital efficiency and share prices. Companies answered with record buybacks, roughly ¥18–22 trillion a year in 2024–25 depending on the count, higher dividends and sales of cross-shareholdings.

When and why

Tokyo, from March 31, 2023; the TSE under Japan Exchange Group, encouraged by activist and foreign investors.

How we know

TSE lists of companies that disclosed plans, buyback tallies from Nikkei and NLI Research, and company dividend records.

Debates and risks

Buyback totals differ widely by method, and whether firms are truly earning more on capital or just shrinking it is debated.

▸Warren Buffett and value investing bought stakes in five trading houses on Tokyo Stock Exchange (Japan Exchange Group)Fact, law or data

The connection

On August 30, 2020, Berkshire Hathaway disclosed about 5% stakes in Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo, Japan's big trading houses. It raised them to about 10% each, funded partly with low-rate yen bonds. By end-2025 the five stakes were worth about $35 billion, against a cost of about $15 billion.

When and why

Tokyo, filings by Berkshire unit National Indemnity from 2020 to 2026; Buffett visited Japan in April 2023.

How we know

Japanese large-shareholding filings, Berkshire's annual reports and shareholder letters, and its yen-bond offering documents.

Debates and risks

Whether Berkshire's endorsement sparked Japan's revival or rode it, and how the stakes evolve after Buffett stepped down as CEO at the end of 2025.