Insights

5 Popular Japanese Stocks

21 November 2018  |  TRADING IDEAS

After NYSE, NASDAQ (both based in the US), and LSE (UK), the Japan Stock Exchange is the number four offshore stock exchange in terms of size, trading volumes, and liquidity. Here are some companies you could be looking into for your portfolio diversification needs. Ideally, pick one target each from electronics, motoring, finance, pharma, and chemical sectors.

1. Kyocera

The company initially dealt ceramics but has extended into electronics and electrical components. It also sells in imaging equipment for office documents, solar power, telco infrastructure, semiconductors, dental tools, and cutting machines. The company leads innovation – like inventing the first speaker-less smartphone for slight hearing impairments (and conversations in loud spaces). It uses vibration and conduction to directly communicate with the ear canal. Kyocera has over 70,000 employees, a net income above 60 billion yen, and its revenue in 2018 has so far surpassed 1.5 trillion yen.

2. Toyota

The car in front is always a Toyota, and that’s as good as reason as any to invest. After all, revenue streams are guaranteed, and currently place it as the sixth largest company in the world, employing a staff over 300,000. As far as auto manufacturing goes, Toyota is second only to Volkswagen (though some listicles interchange the two). Toyota dominates the hybrid market and has invested US$500,000 million in Uber’s self-driving division. Its flagship models – apart from Toyota itself – include Hino, Daihatsu, Subaru, and Lexus, as well as non-auto brands like Delphys, Primearth, and Aero Asahi.

3. Daiichi Sankyo

As Japan’s second-biggest pharma (after Takeda), Daiichi Sankyo is a powerhouse with global tentacles. While it let go of Ranbaxy Labs in India, it still owns Plexxikon in the US and U3 Pharma in Germany. Daiichi Sankyo has only been around since the 2005 merger of Sankyo and Daiichi Pharmaceuticals, so it has come a long way in a short period. Its founder patented adrenaline isolation, and the company’s global presence operates out of New Jersey in the US, with its European headquarters in Munich servicing 12 countries.

4. Mitsubishi Chemicals

The Japanese auto space has always been lucrative, and the bulk of heavy vehicles in Australia bear Japanese names. Mitsubishi Chemical Holdings is a 1995 merger of Mitsubishi Chemicals and Mitsubishi Pharma. It’s well within the Mitsubishi core, which includes companies in banking, health, electronics, glass, construction, paper, plastics, securities, and more. It even has its own investment centre to help you along your Mitsubishi journey.

5. Monex Group

We have a footprint in 12 markets, plus partnerships with Tradestation in the US and Monex Boom in Hong Kong. These collaborations allow us to trade at native levels in Asia and North America, using all the tools and expertise available on the ground. Our international presence offers your diversity in your revenue streams, and our deep-dive into tech offers profitability on multiple fronts. We also own Coincheck, allowing you to trade in crypto indirectly. Invest with us, in us, and through us today.


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Read Also:

U.S. Stock Market – 5 Companies to Watch

Why Malaysian stock market optimism is rising

What you need to know about investing in the top five Asian stockmarkets

Why Indonesian companies are getting some love from analysts

Risk Disclaimer: The information above is of general nature only and does not take into account your objectives, financial situation or investment needs. Prior to you make an investment decision, please make sure you carefully read and fully understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other relevant documents that you can obtain from this website. Monex Securities Australia Pty Ltd (AFSL No. 363972; ABN 84 142 210 179) is the Financial services provider. Financial products trading carries risks and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

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