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Tuesday, 22nd November 2011
In Business In Japan,

Japanese stock exchange to join forces

Japan’s stock exchanges are set to join forces from 2013 in an effort to boost the country’s persistently disappointing economic picture.

The Tokyo Stock Exchange and the Osaka Securities Exchange are on course to become the Japan Stock Exchange in a highly-anticipated move that will make it the world’s third-largest bourse.

The acquisition is worth $3.6 trillion and is the first time both bourses have combined excluding a brief period during the second world war, when the nation was suffering similar uncertainty.

Critics have given the merger mixed reviews, with the head of Japan strategy at Jefferies (Japan) Ltd Naomi Fink questioning its potential.

She told Reuters: “A merger of the two, in theory it’s a good idea, but the issue is more fundamental.

“How do you get interest going again, in the underlying shares.”

The shift came just as Japan fell behind China as Asia’s largest equity market and the world’s second biggest.

Posted by Susan Ballion