Introduction:
When learning about Indian stock markets, it is seen that many global factors affect the primary Indian indices, NIFTY and SENSEX. The stock markets worldwide are interconnected like a web where an activity in one can affect another. This is why it is important not just to dissect the different types of share markets but also to decode the functioning of broader markets like the Asian stock market. What is the Asian equity market? What are the major indices in the Asian stock market? Let’s understand.
History Of The Asian Stock Market
The Asian stock market is a highly diversified market, with different regions offering unique investment opportunities. It started in 1875, when the continent’s first stock exchange opened in Mumbai, India. Not far behind, Japan launched the Tokyo Stock Exchange in 1878. Even earlier, in 1730, Japan pioneered the concept of futures trading, which laid the groundwork for modern stock markets and tools like the famous candlestick chart.
Later, China entered the stock market list with the Shanghai stock market in 1891 and the Shenzhen markets a lot later than this in 1990. Other countries started establishing their stock markets too. Hong Kong set up its exchange in 1891, Indonesia in 1912, and the Philippines in 1927. South Korea’s post-war exchange and Thailand’s revived market in 1975 showed how resilient Asia’s financial systems were.
Today, the Asian stock market encompasses major stock exchanges, including the Shanghai Stock Exchange (China), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), and Hong Kong Stock Exchange, as well as others in countries such as South Korea, Thailand, Singapore, and Malaysia.
Major Stock Exchanges Of Asian Stock Market:
Tokyo Stock Exchange (TSE)
The Tokyo Stock Exchange is one of the largest stock exchanges in the world. It hosts over 3,900 companies, including Toyota, Sony, and Nintendo. As of November 2024, its market capitalization stood at $6.28 trillion (966 trillion Japanese Yen). TSE has the most listed companies globally, grouped into three market segments. The Nikkei 225 Index and the TOPIX are key indices tracking its performance, making it a vital player in global markets.
Shanghai Stock Exchange (SSE)
As of November 2024, the Shanghai Stock Exchange lists 2,277 companies with a market capitalization exceeding $7.28 trillion (53,027 billion RMB). It operates two boards: the mainboard and the STAR Market, launched in 2019 as a NASDAQ-style platform for high-tech start-ups. Known for its state-owned enterprises, the SSE is a cornerstone of China’s financial ecosystem.
Hong Kong Stock Exchange (HKEX)
With over 2,624 listed companies and a total market capitalization of $4.51 trillion, the Hong Kong Stock Exchange is closely tied to the Chinese market. It attracts investors for regional exposure, strengthening its role as a prominent financial hub.
Korea Exchange (KRX)
The Korea Exchange lists over 2,730 companies with a market capitalization of $1.7 trillion. It is home to globally recognized firms like Samsung Electronics, Hyundai Motor, and LG. The KOSPI index is a key benchmark for South Korea’s export-driven economy, which thrives on technological innovation.
Taiwan Stock Exchange (TWSE)
The Taiwan Stock Exchange specializes in electronics and semiconductors, with TSMC as its flagship company. As of October 2024, its market capitalization was $2.24 trillion, driven by rising global demand for semiconductor technology, a key driver of Taiwan’s economy.
Indian Stock Exchanges
- Bombay Stock Exchange (BSE):
The BSE, Asia’s oldest stock exchange, lists over 5,500 companies. As of December 2024, its market capitalization was $5.4 trillion (Rs.459 lakh crore). It plays a crucial role in India’s economy, with top firms like Reliance Industries and TCS listed on it.
- National Stock Exchange (NSE):
Established in 1992, the NSE revolutionized trading in India by introducing electronic systems. The Nifty 50, its benchmark index, tracks 50 leading companies like Infosys and HDFC Bank. In January 2024, NSE crossed a market capitalization of $4 trillion, highlighting its growing prominence.
Major Indices Of The Asian Equity Market:
| Sr. No | Index | Price Level | 52-Week High | 52-Week Low | 1-year Returns (%) |
| 1 | NIFTY | 24,715.00 | 25,424.00 | 21,037.50 | 22.88 |
| 2 | Nikkei 225 | 39,468.00 | 42,426.77 | 31,156.12 | 19.75 |
| 3 | Straits Times | 3,819.01 | 3,842.71 | 3,092.40 | 23.02 |
| 4 | Hang Seng | 19,856.91 | 23,241.74 | 14,794.16 | 22 |
| 5 | Taiwan Weighted | 23,015.69 | 24,045.73 | 17,151.58 | 31.55 |
| 6 | KOSPI | 2,488.77 | 2,872.25 | 2,360.51 | -1.00 |
| 7 | SET Composite | 1,421.09 | 1,506.82 | 1,273.17 | 4.54 |
| 8 | Jakarta Composite | 7,269.63 | 7,910.56 | 6,698.85 | 2.70 |
| 9 | Shanghai Composite | 3,395.11 | 3,674.40 | 2,635.09 | 14.36 |
Overview Of Main Asian Stock Market Indices:
NIFTY 50 (India)
Launched in 1996, NIFTY 50 represents 50 of the largest and most traded companies across 14 sectors on the National Stock Exchange. It serves as a benchmark for India’s stock market performance.
Nikkei 225 (Japan)
Introduced in 1950, the Nikkei 225 is a price-weighted index representing 225 companies listed on the Tokyo Stock Exchange. A price-weighted index means the stocks are weighted based on their share price rather than market capitalization. The Nikkei index is a key indicator of Japan’s stock market and economic trends.
Straits Times Index (Singapore)
Established in 1966, the Straits Times Index tracks 30 top-performing companies listed on the Singapore Exchange. It focuses on the finance, real estate, and telecommunications sectors.
Hang Seng Index (Hong Kong)
Launched in 1969, the Hang Seng Index tracks 50 of the biggest companies listed on the Hong Kong Stock Exchange, reflecting the region’s economic and market performance.
Taiwan Weighted Index (Taiwan)
The Taiwan Weighted Index, introduced in 1967, covers all the listed companies on the TSE. The electronics and semiconductor sectors heavily influence it.
KOSPI (South Korea)
The Korea Composite Stock Price Index (KOSPI), launched in 1983, represents the overall performance of companies listed on the Korea Exchange. It is a comprehensive indicator of South Korea’s economy.
SET Composite Index (Thailand)
Introduced in 1975, the SET Composite Index tracks all listed companies on the Thailand Stock Exchange and captures the performance of key industries in the country.
Jakarta Composite Index (Indonesia)
Launched in 1983, the Jakarta Composite Index measures the performance of all listed companies on the Indonesia Stock Exchange, providing a broad view of Indonesia’s economy.
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Shanghai Composite Index (China)
Introduced in 1991, the Shanghai Composite Index tracks all A-shares and B-shares listed on the Shanghai Stock Exchange. Here, A-shares are stocks of Chinese companies listed on the Shanghai Stock Exchange denominated in Chinese Yuan (CNY) and primarily available for trading by mainland Chinese investors. On the other hand, B-shares are stocks of Chinese companies listed on the SSE but are denominated in foreign currencies (usually USD) and available for trading by foreign investors.
Bottomline
The Asian market is a powerhouse in the global economy, driven by its massive consumer base and rapid growth. It is also home to cutting-edge industries, leading the way in technology, artificial intelligence, robotics, and e-commerce. If you plan to invest in the Asian stock market, leveraging stock advisory services and utilizing stock screeners can be essential tools for navigating this dynamic market and identifying profitable opportunities for your portfolio.
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Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
How do you invest in the Asian stock market?
To invest in the Asian equity market,
Start by understanding the markets, companies, and economic factors.
Choose a reputable broker with access to Asian markets.
Define your investment strategy for long-term growth or short-term gains, and decide whether to invest in individual stocks or index funds.
Diversify your portfolio across sectors and countries to reduce risk.
Monitor your investments regularly and adjust as needed to stay on track with your goals.What factors should be considered before investing in the Asian stock market?
Before investing in Asian markets, many financial advisory firms suggest that you-
Consider the cultural and economic context, as business practices can vary across countries.
Be mindful of currency exchange rates, as fluctuations can impact returns.
Watch for geopolitical risks, such as trade tensions, conflicts, or regulatory changes, that can affect market stability.What is the difference between the Asian stock market and Asia-Pacific markets?
Asian Market refers specifically to Asian countries, including major economies like China, Japan, India, and Southeast Asia. On the other hand, the Asia-Pacific Market (APAC) is a broader region that includes not only Asian countries but also countries in the Pacific Ocean region, such as Australia and New Zealand. It encompasses a wider geographical area than just Asia.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
