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How To Start Investing In Japanese Stocks Via Interactive Brokers (IBKR)

Japan is the fourth largest economy in the world.

After decades of being overshadowed by its past economic boom years, the Japanese stock market is now exhibiting signs of a strong resurgence. In 2023, the benchmark Nikkei 225 index surged by over 27%, outperforming most major global indices. So far this year, the index has already risen by an additional 24%. This impressive rally has captured the attention of global investors, reigniting interest in Japanese equities. Whether you’re a seasoned investor or just starting, provides a robust platform to access the Japanese stock market right from the comfort of your home. Japan’s stock market has had a rollercoaster ride over the years, characterised by periods of remarkable growth and prolonged stagnation. Here’s a brief overview: : Japan experienced an economic bubble in the 1980s, fuelled by loose monetary policy and speculative investments. The Nikkei 225 soared to an all-time high of nearly 39,000 in December 1989. : The bubble burst in the early 1990s, leading to a prolonged economic slump known as the “Lost Decades.” The Nikkei plummeted, and the market struggled to recover for years. Deflation, a weak banking sector, and structural issues plagued the Japanese economy. : In 2012, Prime Minister Shinzo Abe launched his economic program, “Abenomics,” which aimed to revive the economy and end deflation. A combination of monetary easing, fiscal stimulus, structural reforms, and a weakening yen contributed to a gradual recovery in the stock market. The Nikkei reached a peak of around 24,000 in 2018. : The COVID-19 pandemic caused a brief downturn in 2020, but the market quickly rebounded. Continued economic reforms, corporate governance improvements, and a global focus on technology and innovation have fuelled the recent surge. The Nikkei recently surpassed its 1989 peak and reached new all-time highs in 2024, currently trading above 41,000. Initial investments in Japan’s top five trading houses four years ago by Warren Buffett’s company Berkshire Hathaway have also fuelled optimism. Those trading firms are Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Since then, Berkshire Hathaway has raised its stake in those trading companies to around 9% each. The well-diversified conglomerate said it intends to hold its Japanese investments for the long run. Beyond Japan’s largest sogo-shosha (general trading companies) that Berkshire Hathaway has invested in, the Japanese stock market features a wide array of companies, many of which are globally recognised brands. From retail powerhouses like Fast Retailing (Uniqlo) to tech innovators such as Nintendo, and multinational firms like SoftBank, investors have abundant opportunities to explore. These well-established companies are also renowned for their innovation, quality, and global reach. Investors seeking exposure to a diverse range of sectors and the potential for long-term growth could find valuable opportunities in Japan-listed companies. is a popular online brokerage platform that enables investors to access global markets, including the Japanese stock market. According to the IBKR website, investors can access over 11,000 listed companies in Japan, as well as other investments such as bonds, exchange-traded funds (ETFs) and options. Opening an from Singapore is straightforward. You need to provide your personal information, proof of identity, and financial details. Once your account is approved, you can fund it via bank transfer or other methods. You can read our on opening an IBKR brokerage account. After logging in, be sure to enable permissions to trade on the Tokyo Stock Exchange and other relevant Japanese exchanges in your IBKR account settings. You can also use the to research Japanese companies that align with your investment objectives. IBKR charges for trading Japanese stocks. These fees vary depending on your account type and trading volume. Additional fees, such as exchange fees and clearing fees, may also apply. Here’s a snapshot of the amount in fees you can expect to pay: For instance, if you are on a fixed account and are buying 100 shares at a share price of JPY 10,000 each, you would pay a total commission of JPY 800 for the trade (around S$6.78). The Japanese stock market’s resurgence presents a compelling opportunity for investors seeking diversification and growth potential. Remember, thorough research, careful stock selection, and a long-term investment approach are key to success in investing, and the Japanese stock market is no exception.