Nikkei 225 stock index
We are already accustomed to the fact that most often the news talks about American stock indices, which reflect sentiment in the US stock market.
But it is logical that in other countries there are also tools like Dow Jones and NASDAQ 100 , which help assess the situation in certain sectors of the economy.
Today, the attention of many investors is focused on the Japanese economy, so many will be interested in what the Japanese analogue of Dow Jones is.
The Japanese stock index Nikkei 225 (Nikkei 25) is one of the most significant indicators of the Japanese economy and is widely known throughout the world.
What is the Japanese Nikkei 225 stock index?
Nikkei 225 is the main Japanese stock index, which reflects the performance of the 225 largest companies listed on the Tokyo Stock Exchange.
The index was created in 1950 by one of the media corporations Nihon Keizai Shimbun and has since become an important tool for assessing the state of the Japanese economy.
Nikkei 225 is of great importance for the global economy as Japan is one of the largest economies in the world. The index reflects the health of the Japanese stock market and serves as an important indicator for investors and traders around the world.
The instrument is an indicator of Japan's economic growth and stability. Positive changes in the index often indicate the development of the Japanese economy and its attractiveness to foreign investors.
The selection of companies included in the Nikkei 225 is based on their market capitalization and liquidity. Complete list of companies .
This includes such giants as:
- Toyota Motor Corp 196.9
- Keyence Corp 100.4
- Sony Group Corp 99.3
- Nippon Tel & Tel Corp 93.5
- SoftBank Group Corp 67.2
- Mitsubishi Group Inc 63.9
- KDDI Corp 62.6
- Daiichi Sankyo Co Ltd 61.2
- Fast Retailing Co Ltd 56.5
- Nintendo Co Ltd 49.5
- Recruit Holdings Co Ltd 42.7
The capitalization of the leader Toyota Motor Corp currently amounts to 196 billion US dollars. And the total capitalization of all companies forming the index as of July 13, 2023 exceeds 6.86 trillion US dollars.
The index consists of companies from various industries such as automobile, electronics, financial and others. This allows us to reflect the state of various sectors of the Japanese economy.
History of the creation of Nikkei
The Japanese stock index Nikkei 225 is one of the most famous and influential indices in the world. It was created in 1950 by the Nihon Keizai Shimbun, and is now one of the most important indicators of the Japanese stock market.
The history of the creation of Nikkei 225 is associated with the desire to reflect the state of the Japanese economy and select the most significant companies for inclusion in the index. When selecting companies, factors such as their market capitalization, liquidity and impact on the Japanese economy were taken into account.
At the time, Japan was just beginning to recover from World War II, and the Nikkei 225 index played an important role in attracting foreign investment into the economy.
In its early years, the Nikkei 225 index grew relatively slowly. However, in the 1980s, the index began to rise rapidly, fueled by the Japanese economic fever. In 1989, the index reached its all-time high of 38,957.44 points.
After the market crash of the 1990s, Nikkei stagnated for many years. However, in recent years the index has begun to recover and is currently at 32,000 points.
The principle of selecting companies for Nikkei is based on their importance and influence on the Japanese economy. The index includes 225 of the largest companies representing various industries such as automotive, electronics, financial services and others. This allows us to reflect the state of various sectors of the Japanese economy and provide a more complete picture of its development.
The composition is updated periodically to reflect changes in the market. The update occurs annually in September, when the composition of the index is revised.
Companies that do not meet the selection criteria or have lost market relevance may be excluded from the index, and new companies that meet the criteria may be included.
Nikkei 225 index value
The Nikkei 225 Index is one of the most popular tools for tracking the health of the Japanese economy. It is also widely used as a benchmark to compare the performance of Japanese companies.
The value of the indicator can be used to predict the future profitability of the Japanese economy. For example, if the Nikkei 225 index is rising, it means that the Japanese economy is growing. If the Nikkei 225 index falls, it means the Japanese economy is falling.
In addition, Nikkei is also used to compare the performance of Japanese companies. For example, if the stock of a company in the Nikkei 225 Index grows faster than the index, it means the company is performing more efficiently than other companies on the list.
The Nikkei 225 Index is an important tool for investors who want to invest in the Japanese economy. It allows investors to monitor the health of the Japanese economy and compare the performance of Japanese companies.
At the moment, almost all indicators predict an upward trend for this index, so buy trades will be profitable.