Japanese Retail Margin Buying Reaches 30-Year High on Tokyo Stock Exchange
Margin buying on the Tokyo Stock Exchange surged to about ¥6.5 trillion ($40 billion), hitting levels not seen since 1994. The margin ratio rose to 6–8, well above the 10-year average of 4, signaling aggressive bullish positioning among Japanese retail investors.
Japanese retail investors have ramped up leveraged stock bets, with margin buying on the Tokyo Stock Exchange climbing to approximately ¥6.5 trillion ($40 billion). Levels recently touched their highest since 1994.
The margin ratio — a measure of leveraged positions — has risen to 6–8, significantly above the 10-year average of about 4, indicating increasingly aggressive bullish sentiment.
Individual stocks show extreme leverage: Kioxia's margin ratio is around 12, while Fujikura's exceeds 20.
The trend mirrors rising margin debt across the U.S., Taiwan, South Korea, and Japan, with some analysts warning that stretched leveraged positioning could amplify volatility if markets reverse.
Source: First Squawk