is a
stock market indexA stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds.- Types of indices :...
for the
Tokyo Stock ExchangeThe , or TSE, located in Tokyo, Japan, is the second largest stock exchange in the world by aggregate market capitalization of its listed companies, second only to the New York Stock Exchange...
(TSE). It has been calculated daily by the
Nihon Keizai Shimbun, or , is one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. Its main news publications include:* Nihon Keizai Shimbun, a leading economic newspaper which calculates the Nikkei 225...
(Nikkei) newspaper since 1950. It is a price-weighted average (the unit is yen), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the
Dow Jones Industrial AverageThe Dow Jones Industrial Average also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply as the Dow; is one of several stock market indices, created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...
. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.
The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949.
The Nikkei 225 Futures, introduced at
Singapore ExchangeSingapore Exchange Limited is the stock exchange in Singapore. SGX was formed on December 1 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore and the Singapore International Monetary Exchange . It is the Asia-Pacific's first...
(SGX) in 1986,
the Osaka Securities Exchangeis the second largest securities exchange in Japan, in terms of amount of business handled. As of 31 December 2007, the Osaka Securities Exchange had 477 listed companies with a combined market capitalization of $212 billion. The Nikkei 225 Futures, introduced at the Osaka Securities Exchange in...
(OSE) in 1988,
Chicago Mercantile ExchangeThe Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization...
(CME) in 1990, is now an internationally recognized futures index.
The Nikkei average hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87.
is a
stock market indexA stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds.- Types of indices :...
for the
Tokyo Stock ExchangeThe , or TSE, located in Tokyo, Japan, is the second largest stock exchange in the world by aggregate market capitalization of its listed companies, second only to the New York Stock Exchange...
(TSE). It has been calculated daily by the
Nihon Keizai Shimbun, or , is one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. Its main news publications include:* Nihon Keizai Shimbun, a leading economic newspaper which calculates the Nikkei 225...
(Nikkei) newspaper since 1950. It is a price-weighted average (the unit is yen), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the
Dow Jones Industrial AverageThe Dow Jones Industrial Average also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply as the Dow; is one of several stock market indices, created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...
. In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.
The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949.
The Nikkei 225 Futures, introduced at
Singapore ExchangeSingapore Exchange Limited is the stock exchange in Singapore. SGX was formed on December 1 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore and the Singapore International Monetary Exchange . It is the Asia-Pacific's first...
(SGX) in 1986,
the Osaka Securities Exchangeis the second largest securities exchange in Japan, in terms of amount of business handled. As of 31 December 2007, the Osaka Securities Exchange had 477 listed companies with a combined market capitalization of $212 billion. The Nikkei 225 Futures, introduced at the Osaka Securities Exchange in...
(OSE) in 1988,
Chicago Mercantile ExchangeThe Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization...
(CME) in 1990, is now an internationally recognized futures index.
The Nikkei average hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Its high for the 21st century stands just above 18,300 points.
Another major index for the Tokyo Stock Exchange is the
TopixTokyo stock Price IndeX, commonly known as TOPIX, along with Nikkei 225, is an important stock market index for the Tokyo Stock Exchange in Japan, tracking all domestic companies of the exchange's First Section. As of 10 November 2008, there were 1713 companies listed on the first section of the TSE...
.
Weighting and modifications
Stocks are weighted on the Nikkei 225 by giving an equal weighting based on a par value of 50 yen per share. Events such as stock splits, removals and additions of constituents impact upon the effective weighting of individual stocks and the divisor. The Nikkei 225 is designed to reflect the overall market, so there is no specific weighting of industries.
Changes to the components
Stocks are reviewed annually and announcements of review results are made in September. Changes, if required, are made at the beginning of October. Changes may also take place at any time if a stock is found to be ineligible for the Stock Average (e.g. delistings, etc.). All proposed changes will be announced in Nikkei's Japanese newspapers and will appear on NNI.
After a stock has been replaced, the divisor is reviewed and modified to ensure a smooth transition of the stock index.
Components
As of June 2009, the Nikkei 225 consists of the following companies: (Japanese securities identification code in parentheses)
External links