Why Asian markets have a lunch break
A tradition that disappeared in the West but persists across most of Asia.
Tokyo, Hong Kong, Shanghai, Shenzhen, Singapore until 2011, and most Southeast Asian exchanges close for an hour or two around midday. This is sometimes presented as a cultural quirk; the real explanation is more institutional.
Historical reason
The lunch break dates back to manual trading floors, where clerks and runners genuinely needed a break. When markets electronified in the 1980s and 1990s, Western exchanges removed the break for competitive reasons. Asian exchanges generally kept it.
Practical effect
The midday break creates a discontinuity in the order book. Auctions at the open and close of each half-session set reference prices, and option market-makers reset their hedges twice a day rather than once.
Which markets have it
Tokyo 11:30-12:30. Hong Kong 12:00-13:00. Shanghai and Shenzhen 11:30-13:00. Jakarta 12:00-13:30. Kuala Lumpur 12:30-14:30. India, Korea, Taiwan and Singapore do not.