Stock Market Indices (+)

The Japanese NIKKEI 225

Introduced in July 1950, the Nikkei 225 is the leading Asian stock market index. The index is comprised of 225 selected common stocks listed on the Tokyo Stock Exchange.

Highlights

The Japanese NIKKEI 225 (日経平均株価, Nikkei heikin kabuka) consists of 225 Japanese domestic stocks listed in the Prime Market of the Tokyo Stock Exchange.

• The Nikkei Stock Average (Nikkei 225) is used around the world as the premier index of the Japanese stock market
• Nikkei 225 is a price-weighted equity index which means the price of the index is an average of the share prices of all the companies listed
• The P/E ratio of the Japanese market in late 2023 was x19.9 (the 3-year average P/E ratio is x18.4)
• The average dividend yield of Nikkei 225 in late 2023 was 3.00%
• The total Japanese stock market cap over GDP is currently approximately 126.7% (the 25-year high is 136.9% in 2021, and the 20-year low is 47.3% in 2002)

History

The NIKKEI 225 began to be calculated on the 9th of July 1950 and retroactively calculated back to 1949. The Nikkei Futures were introduced in 1986 at the Singapore Exchange (SGX).

• The NIKKEI indices are calculated and provided by Nikkei Inc.
• Another major Japanese stock market index is the TOPIX (Tokyo Stock Price Index)
• Nikkei 225 is a price-weighted equity index with a calculation frequency of every 5 seconds

Chart: The historic (yearly) chart of the NIKKEI 225

Sector Allocation of the NIKKEI 225

This is the sector allocation of the Japanese NIKKEI 225:

• Electric Machinery (31 companies)
• General Services (17 companies)
• Chemicals (17 companies)
• Machinery (16 companies)
• Transport & Railway (15 companies)
• Metals & Steel (12 companies)
• Food (11 companies)
• Banking (10 companies)
• Automobiles & Auto parts (10 companies)
• Other Manufacturing (9 companies)
• Construction (9 companies)
• Pharmaceuticals (9 companies)
• Retail (8 companies)
• Glass & Ceramics (7 companies)
• Trading Companies (7 companies)
• Precision Instruments (6 companies)
• Communications (5 companies)
• Insurance (5 companies)
• Real Estate (5 companies)
• Petroleum & GAS (4 companies)
• Electric Power (3 companies)
• Other Financial Services (3 companies)
• Securities (2 companies)
• Textiles & Apparel (2 companies)
• Pulp & Paper (2 companies)
• Rubber (2 companies)
• Shipbuilding (1 company)
• Fishery (1 company)
• Mining (1 company)

» Detail Components of the Nikkei 225 Stock Average

Other Nikkei Indexes

• Nikkei Stock Average Volatility Index
• JPX-Nikkei Index 400
• JPX-Nikkei Mid and Small Cap Index
• Nikkei Asia300 Investable Index (USD)

Compare Brokers Trading the Japanese NIKKEI

These are some brokers to trade NIKKEI 225 via CFD contracts:

Resources:

• https://indexes.nikkei.co.jp/en/nkave/
• https://www.ceicdata.com/en/indicator/japan/market-capitalization--nominal-gdp
• https://en.wikipedia.org/wiki/Nikkei_225

■ The Japanese NIKKEI 225

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