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Nikkei 225 definition definition
Japan’s main stock market index, tracking the performance of 225 of the biggest companies listed on the Tokyo Stock Exchange.
What is the Nikkei 225?
The Nikkei 225 is Japan’s main stock market index, tracking the performance of 225 of the biggest companies listed on the Tokyo Stock Exchange. Think of it as Japan’s version of the S&P 500 – except instead of companies like Apple and Microsoft, you’ve got big names like Toyota, Sony, and Nintendo.
How is the Nikkei 225 weighted?
The index is price-weighted, which means higher priced stocks have more influence over its movements (unlike the S&P 500, which is weighted by market value). When people talk about how the Japanese stock market is doing, they’re usually referring to the Nikkei 225.
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