Japan brokerages brace for longest mart downtime since WW2

TOKYO: Japanese brokerages are taking steps to help relieve at least some investors worried about getting trapped by the country’s unusually long holiday next month related to the emperor’s succession.

Markets in Japan are scheduled to be closed from April 27 through May 6 because the government has designated national holidays around the abdication of Emperor Akihito, in addition to annual Golden Week days off over that period. In total, markets will be shut for six trading sessions, sparking concerns of volatility.

Brokerages have started implementing measures that may alleviate trouble for investors in overseas stocks at least.

Daiwa Securities Group Inc planned to make trading in United States and Europe-listed stocks available for its Japanese clients on April 30 and May 2, said spokesman Yuji Kamioka.

SMBC Nikko Securities Inc was considering setting up a call centre to handle transactions from clients looking to sell US-listed equities, NHK reported.

Rakuten Securities Inc earlier this week cautioned investors of possible post-holiday volatility.

These actions may alleviate some problems for investors who otherwise may not have had a way out of positions for more than a week. Extended holiday closures bring back memories of January’s “flash crash”, when Japan’s four-day New Year holiday exacerbated liquidity constraints in the currency market, sending the yen soaring against the US dollar.

The impact for domestic stocks from the break planned for AprilMay remains to be seen. The total 10-day market closure would be Japan’s longest since the end of World War 2, said a spokesman at Japan Exchange Group Inc.