Japan gains footing for future GDP growth

Significance In addition, the government approved the nation’s first COVID-19 vaccine. Both announcements sent the Tokyo Stock Exchange indices to thirty-year highs. However, deflation remains a problem and wages are stagnant. Impacts Fiscal spending will support small businesses and employees. Full recovery will depend on the rate of vaccine roll-out, which is still in the planning stage. Demand for urban services dependent on office workers will remain weak. Demand for office property is likely to recover, but not to former levels.

Analyses of Daily Market Impact Using Execution and Order Book Information

We analyzed the Tokyo Stock Exchange (TSE) for a 29-month period from August 2014 to December 2016, including every transaction and order book snapshot, and confirmed through a simple statistical test that the market impact depends on each stock. Based on a correlation analysis, we found that the market impact slowly changes over time. From an order book analysis, negative correlations were found between the market impact and the averaged limit order volumes in the order book. We also clarified that one of the factors of market impact is the volume of limit orders in the order book.

Does Tokyo Stock Exchange Appreciate Corporate Innovations? Role of Patents’ Quality and Research Productivity.

This paper examines the market perception of corporate innovations in Japan. It follows the research question formulated by Hall, Jaffe, and Trajtenberg (2005): "how does innovative activity translate into market value, and what aspects of the underlying process are captured by the empirical measures available?". The novelty of my study is twofold. First, it embraces the longitudinal innovation- and finance-related corporate records to come up with the largest ever combined data-set for Japan that encompasses 632 companies listed at the Tokyo Stock Exchange over the period of 19 years. Second, in addition to linear regressions, it applies the generalized additive models (GAMs). The latter technique allows for realistically capturing nonlinear patterns present in the data while at the same time retaining predictive features of a model. The main finding of the article is following. Amid the dominant role of research and development (R&D), especially for the Pharmaceutical and Chemical industries, market consistently rewards influential patents in the manufacturing sector.