Key facts
- Japanese investors will gain real-time access to U.S. stocks during Tokyo trading hours.
- U.S. exchanges are extending trading hours to 23 hours a day.
- Several major Japanese online brokerages will launch new trading services in December.
- Concerns exist about potential fund outflows from the Japanese stock market.
Major U.S. stock exchanges are set to begin nearly round-the-clock trading in early December, a move that will allow Japanese investors to buy and sell U.S. equities in real-time during Tokyo's daytime hours. Several large Japanese online brokerages, including SBI Securities and Rakuten Securities, are launching new services to facilitate this change, which is expected to commence on December 6. This expansion of trading hours by U.S. markets, currently offering about 16 hours of trading accessible in Japan, aims to fill the remaining gap by offering 23 hours of continuous trading, excluding a one-hour maintenance period. While retail investors are expected to welcome the increased flexibility, institutional investors are weighing the associated costs and potential benefits, particularly concerning liquidity during off-peak hours. The development follows similar services already offered by South Korean brokerages.