TOKYO--The Nasdaq stock trading system will begin operating in Japan in a joint venture with Japanese Internet giant Softbank, and a similar deal with the Australian Stock Exchange is expected to be announced later this week.

The Japanese firm said today that it hopes to have a sister version of Nasdaq operating by the end of next year.

"Nasdaq Japan will offer Japanese investors the opportunity to invest in 5,000 U.S. high-growth stocks and provide growing Japanese firms with the means to obtain funds smoothly and an active exchange for public offerings," it said in a statement.

Analysts have stated that the Tokyo based Nasdaq market of fast-growing U.S. high-tech firms will provide opportunities for Japanese investors and also help improve the still-immature Japanese market for start-ups.

Softbank said it agreed with the National Association of Securities Dealers (NASD) to set up a joint venture company this month financed on a 50-50 basis with NASD.