Volumes Rise Across Main Exchanges in the Asia-Pacific Region as Volatility Picks Up

Three of the most important financial centres in the APAC region have reported positive monthly operating metrics. Volumes were up

Exchanges in Japan, Singapore and Australia have boosted investor confidence in the region after reporting an uptake in trading activity. The three exchanges saw positive flows across various segments, including equities, futures and options. The three bourses hold significance in the region as a key benchmark for the wider Asia market, with Japan’s Tokyo Stock Exchange sitting in top position as the most liquid bourse in Asia.

Japan’s Tokyo Stock Exchange was the best performer among the pact of major global exchanges, surpassing a number of key figures. The venue reported that during September the daily average trading value for the exchange’s largest companies, recognised as the TSE 1st Section was $21 billion, which also reached the highest level for the first time in 6 months.

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Additionally, the derivatives segment also performed well, with the exchange reporting that the total derivatives trading volume in the first half of this year (Apr-Sep) was 126,604,920 contracts, the second highest interim figure on record.

In Australia, the country’s main trading venue, the Australian Stock Exchange (ASX) has seen monthly value of trades increase, in September it reported $3.15 billion, 10% higher on a month-on-month basis. Furthermore, Australia also saw strong figures in its derivatives segment, in September 2014 the average daily number of derivatives traded on ASX increased 9%. Single stock options average daily contracts were up 6% and index options average daily contracts were up 57%.

Singapore’s main equities and derivatives venue, the Singapore Exchange (SGX), saw the total value of securities traded in September increase by about 1% to over $16.8 billion,  compared to August. However, the SGX securities average daily value dipped by 4% month-on-month and was 34% lower year-on-year.

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On a promising note, in September the venue saw a total of 50 new listings, with two of the firms, YuuZoo Corporation on Mainboard and Versalink Holdings on Catalist raising $28.79. In addition, the exchange saw an increase in its derivatives sector, the total derivatives volume in September was 10.6 million contracts, an increase of 13% month-on-month and 18% on a year-on-year basis.

Singapore was a recent entrant to the growing emerging market currency futures trading, the venue’s foreign exchange futures contracts saw record volumes for the 3rd consecutive month, with over 100,000 contracts traded in September, as rising FX market volatility increased hedging demand by investors. The SGX Indian Rupee currency (INR/USD) contract led the way with a 50% month-on-month increase to exceed US$130 million in daily notional trading turnover.

Data from the three largest financial hubs shows that investor confidence is increasing in the world’s most developed nations, a significant boost for global markets after talk of more quantitative easing by senior officials.

John Farrell of GroFX, commented about the figures to Forex Magnates: “Positive volumetric data is a sign in any part of the world, more so for countries like Japan and Singapore as they are the pillars of the Asia-Pac region. Notably Options trading has spiked on the back of September’s movements courtesy of Mr. Draghi.”

Singapore’s bitter rival, Hong Kong, has also been privy to positive trading volumes in September, where it saw an increase in both its equities and derivatives segments. The Hong Kong exchange also offers the Chinese yuan futures contract which saw figures increase 52% from a year earlier.

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