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Asian stock markets
Asian stock markets

All You Should Know About Asian Stock Markets

We hear a lot about the New York Stock Exchange and Nasdaq in the news as financial markets rely on their movements to evaluate the world's economic sentiment. Yet, Tokyo Stock Exchange, the Shanghai Stock Exchange, and the Hong Kong Stock Exchange are among the largest world markets. 

Although all stock markets work similarly, Asian stock exchanges have features you should know about. Our guide will provide you with all the useful information you need. 

What Is a Stock Market?

Before we start with the Asian stock markets, let's clarify what the stock market is. 

In common words, a stock market is a place where shares of publicly listed companies are traded. They can be bought and sold by traders, investors, and hedge fund managers. 

A stock market is a place where shares of publicly listed companies can be bought and sold by different kinds of investors. 

The stock market serves as a barometer of the world's economic health. It's not a surprise that stocks surge in times of positive sentiment and plunge in times of unstable times.

Below, there is a list of the largest stock exchanges by listed companies' market capitalization as of March 2020. 

World’s largest stock exchanges

As you can see, the Japan Exchange Group, Shanghai Stock Exchange, and Hong Kong Exchanges are ranked third, fourth, and fifth, respectively. 

If you still need reasons why you should invest in Asian stock markets, read on to see the other causes.

Why You Should Invest in Asian Markets 

There are several reasons why you should know about Asian stock markets. 

  • Strong economies. The Asian stock market is represented by many countries. Still, most of them are much more robust than the rest of the world. It means that the companies listed on their stock exchanges are strong and competitive. In general, Asia is a subject of steady, fast growth.
  • Diversification. Consider the Asian stock market as a way to diversify your portfolio. The Asian market is different. Thus, it may work well to hedge your funds.
  • Additional hours. It's not a secret that Asian stock markets work when some other markets sleep. Thus, it can be an option if you look for additional opportunities. 
  • A considerable part of world stocks. Above, we showed you that three Asian stock exchanges are among the top five world markets. It means that they include an enormous part of world stocks that you can trade. 

Asian Stock Markets Benefits and Drawbacks

Let’s consider what advantages Asian stock markets have against other markets. 



Giant companies. Asian stock exchanges are in the top-5 world stock exchanges by company capitalization. 

Regulation. Asian regulation is stricter than in other regions. 

Additional opportunities. Asian stock markets operate during different hours compared with European and American marketplaces. Thus, you have extra hours to trade.

Different factors. Asian economies and companies may differ from common American or European ones. 

Leading economies. Strong world economies represent Asian markets. Thus, they provide excellent opportunities for successful trades. 

List of Asian markets

List of Asian Stock Markets 

Let's look at the largest Asian stock exchanges. 

Tokyo Stock Exchange

The TSE or Tokyo Stock Exchange is the largest Japanese stock exchange created on May 15, 1878. The exchange includes stocks of 3,700 of the largest companies. If you want to trade shares of such Japanese giants as Honda, Mitsubishi, and Toyota, choose this stock exchange. 

Hong Kong Stock Exchange

The Hong Kong Stock Exchange was founded in 1891. As of October 2020, the market capitalization was $43.3 trillion. The exchange is represented by Chinese banks and insurance companies. They include the Bank of China, Industrial and Commercial Bank of China, and China Construction Bank. 

The exchange has over 2,500 companies. To be listed on it, the minimum market capitalization requirement is HK$500 million. At the same time, the public float's minimum value is HK$125 million. 

Shanghai Stock Exchange

Shanghai Stock Exchange is one of the largest world exchanges and one of China's three leading marketplaces. Surprisingly, the Shanghai Stock Exchange is not fully open to foreign investors. It's a subject of tight capital account controls.

The stock exchange was established in 1990. Thus, it is relatively young. All the listed stocks are divided into A and B types. A-stocks are traded in the Chinese yuan. B-stocks are denominated in US dollars and were created only in the 1990s for non-residents. 

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