The Nikkei 225: what should you know about it?

Like all developed countries, Japan also has a stock market index that is followed by investors. It is the Nikkei 225, which is the main stock market index of the country. What is the history of this index? What is its composition? Read this article to find out.

What is the history of the Nikkei 225?

The Nikkei 225, also known as thenikkei 225 Stock Average, came into existence on September 7, 1950. However, it was first calculated on May 16, 1949. It was abandoned in 1969 by the Tokyo Stock Exchange at the expense of the Tokyo Stock Index. The index owes its survival to the daily newspaper Nihon Keizai Shimbun, which was responsible for its calculation and for the selection of the 225 stocks that make up the index. The Nikkei 225 uses the Yen and reached its highest point on December 29, 1989 while its lowest level was recorded in March 2009. It has fluctuated widely from its inception to the present day. As of May 17, 2021, its price has risen to 28,317.83 points.

What is the composition of the Nikkei 225?

The stocks in the Nikkei 225 are companies that operate in six different industries and that allow Japan to fully enjoy its strength in the industrial, economic and technological fields. Every year, the stocks in the index are updated. Thus, some companies give way to others. However, the country's major multinationals such as: Bridgestone, Casio, Yamaha, Gaz de Tokyo, Rakuten, Soft Bank, Sony, Mazda, Toyota Engine... remain. The Nikkei 225 is the index of the Japanese stock market, which occupies the largest place in Asia thanks to the stocks that make it up.

Now you know what is called Nikkei 225 index. It is simply the set of 225 stocks divided into six categories of activities.