Japan Dark Report: September 2026
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Japan Dark Report is a tool to help the buy side understand and navigate the Japan dark market structure on a per stock basis. The full report highlights dark market data points including dark % of turnover and trends, dark trade sizes, and statistical highlights, amongst others.
Japan's average daily notional traded continued to soften in September, declining -10.7% from its trailing three-month average. Activity weakened alongside a -0.9% decline in TOPIX, partially retracing August's 3.9% gain. Market was weighed down by a BOJ hike that disappointed on forward guidance, sharp yen volatility, rising JGB yields and a three-day public holiday reducing trading liquidity.
TOPIX 500 dark activity declined by -5%, lowering dark participation to 13.6% of total market turnover and indicating dark turnover underperformed than the broader market. Intraday volatility also moderated, with annualized realized volatility on the TOPIX falling to 14.7%, from 17.8% over the trailing three-month period. This meaningful volatility compression, coupled with overall weaker market, likely contributed to softer utilization of dark venues.
Financials (+2.7%) and Information Technology (+2.7%) were the only sectors to outperform in September, supported by a steeper yield environment and continued demand for domestic technology names. Financials also stood out as the only sector to post a rise in dark activity, with dark participation declining across all other sectors.
Notable Financials names saw elevated dark activity:
T&D (8795.T): 33.7% in dark, up +149% MoM and marking a record high in the past 12 months. The increase was likely driven by three factors: a 16% MoM decline in lit market volume, the competition of treasury shares acquisition program on 11 Sep and a massive new institutional stake build by Goldman Sachs (24.3M shares, nearly a full 5% position).
Nihon M&A Center (2127.T): 24.0% in dark, up +58% MoM and marking a record high in the past 12 months. Dark trading activity was particularly surged from late Aug through mid-Sep, coinciding with a sustained sell-off that began on 28 Aug after the annual report publication. The decline was accompanied by notable institutional selling, with both State Street (-4.09m shares) and Baillie Gifford (-4.08m shares) reducing their positions.
Nomura (8604.T): 17.1% in dark, extending a three-month downward trend and reaching its lowest level in the past 12 months. Stock reached a five-year high of ¥1,675 on 14 Sep, before pulling back sharply on 17 Sep after Nomura indicated that wholesale revenue growth was moderating, compared with the double-digit growth reported in the previous two quarters. Dark trading activity picked up noticeably during the pullback.
Fukuoka Financial (8354.T): 14.4% in dark, sustaining a gradual upward trend since March 2026. The upward trend coincided with continued share price appreciation, with the stock reaching record highs on two occasions during the month. This move was supported by institutional accumulation from global managers (State Street +2.83M shares, BlackRock +1.43M shares, Vanguard +1.28M shares), alongside two consecutive earnings beats.
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