On January 6, 2026, the TOPIX reached an all-time high of 3538.44 points (as of January 9, 2026), marking a milestone that reflects structural reforms rather than short-term factors. The Tokyo Stock Exchange (TSE)’s Capital Efficiency Improvement Request since 2023 has pushed companies to improve profitability and asset utilization, while a stronger focus on shareholder returns continues to attract investors. In addition, the launch of the new tax-free investment program (NISA) in 2024 has encouraged long-term investing among retail participants, adding depth to the market. These developments indicate that Japan’s equity rally is not a temporary event but a sustained trend that will likely continue, supported by global interest in Japan’s improving governance and corporate efficiency.
Amid this backdrop, the ETF market has surged, with over 380 listed products and assets under management (AUM) exceeding ¥100 trillion ($667 billion). Overseas and retail investors have been key drivers, increasing ETF holdings by 60% and 40% between 2023 and 2024. Overseas investors are drawn by Japan’s low-cost access to diversified exposure and its reputation for transparency, while retail investors leverage ETFs for tax-efficient, long-term strategies under NISA.
Beyond traditional benchmarks like TOPIX and the Nikkei 225, investors can now access sector ETFs, thematic ETFs, high-dividend ETFs, J-REIT ETFs and even Japanese government bond (JGB) ETFs. Since 2023, active ETFs have also been introduced, offering unique strategies for investors. This evolution enables portfolios that combine broad exposure with targeted allocations, tailored to specific objectives, and reflects the growing sophistication of Japan’s investment landscape.
A hallmark of Japan’s ETF market is its efficient liquidity framework. Beyond on-screen trading supported by a robust market-making program, institutional investors can tap into deep liquidity and competitive pricing through the TSE’s RFQ platform, CONNEQTOR. With CONNEQTOR, investors receive real-time quotes from multiple market makers − often within two seconds − ensuring speed and price efficiency. All trades are executed as exchange transactions, eliminating counterparty risk and guaranteeing transparency.
Today, more than 300 institutional investors, both domestic and international, use CONNEQTOR, and adoption continues to grow, underscoring its role in improving market accessibility and execution quality. Combined with the expanding diversity of ETF products and strong liquidity infrastructure, Japan is positioning itself as one of the most dynamic and globally competitive ETF markets.
The TSE Asia Startup Hub, launched in 2024, is a strategic initiative by the Tokyo Stock Exchange to support promising Asian companies with ties to Japan.
In collaboration with 56 partners and 4 observers from various fields such as banks, securities firms, audit firms, law firms, VCs and government-related organizations, the TSE Asia Startup Hub helps these companies expand their business in Japan, build partnerships with Japanese firms, and prepare for IPOs on the Tokyo Stock Exchange.
The list of partners can be viewed from the following link.
List of Partners | TSE Asia Startup Hub | Japan Exchange Group
In September 2024, the TSE Asia Startup Hub announced 14 companies as Supported Companies. In September 2025, we announced 20 companies as the 2025 Supported Companies of the TSE Asia Startup Hub, including seven newly selected companies and 13 re-selected companies. These companies are based across seven Asian countries and regions: Singapore, Taiwan, the Republic of Korea, Malaysia, Vietnam, Indonesia and the Philippines.
You can view comments from the CEOs of the Supported Companies on their plans to enter the Japanese market on the official JPX Group YouTube channel.
At this event, 18 out of 20 supported companies from seven countries and regions participated. Following the introduction of the TSE Asia Startup Hub, a photo session was held with Mr. Yamaji, CEO of JPX, and the Supported Companies.
The following companies participated in the photo session (in alphabetical order):
As a side event to the Forum, the “TSE Asia Startup Hub: Networking & Company Showcase” facilitated connections between supported companies and venture capital firms, private equity players, financial institutions and corporate partners.
■ Looking Ahead
The TSE Asia Startup Hub is expected to attract increasing attention as a key platform connecting the Japanese and Asian markets. The trends of the 20 supported companies will be closely watched.
We proudly present J-Bridge, a global platform connecting Japanese companies with partners worldwide, including Singapore, to co-create innovation. Focusing on digital, green and life sciences, J-Bridge supports strategic alliances − business and technology partnerships, investments, joint ventures and M&A − driving new business development and growth. We invite companies, universities and R&D institutions in Japan and Singapore to join us in shaping the future together. For participation or inquiries, please contact JETRO Singapore.
Past Event Report
