Nikkei 225

The Nikkei 225 began to be calculated on 9 July 1950 (1950-07-09), retroactively calculated back to May 16th 1949, when the average price of its component stocks was 176.21 yen. Since January 2010, the index is updated every 15 seconds during trading sessions.

The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index.[4]

The Nikkei average has deviated sharply from the textbook model of stock averages, which grow at a steady exponential rate. The average hit its all-time high on 29 December 1989, during the peak of the Japanese asset price bubble, when it reached an intra-day high of 38,957.44, before closing at 38,915.87, having grown sixfold during the decade. Subsequently, it lost nearly all these gains, reaching a post-bubble intraday low of 6,994.90 on October 28, 2008 — 82% below its peak nearly 19 years earlier[5]

Unlike stock markets in the US and elsewhere that eventually recovered from crashes, the Nikkei has stagnated for decades. It remains well below its peak over 30 years later.

On March 15 2011, the second working day after the massive earthquake in the northeast part of Japan, the index dropped over 10% to finish at 8605.15, a loss of 1,015 points. The index continued to drop throughout 2011, bottoming out at 8160.01 on November 25, putting it at its lowest close since March 31st, 2009. The Nikkei fell over 17% in 2011, finishing the year at 8455.35, its lowest year-end closing value in nearly thirty years, when the index finished at 8016.70 in 1982.[6]

The Nikkei started 2013 near 10,600, hitting a peak of 15,942 in May. However, shortly afterward, it plunged by almost 10% before rebounding, making it the most volatile stock market index among the developed markets. By 2015, it has reached over 20,000 mark; marking a gain of over 10,000 in two years, making it one of the fastest growing stock market indices in the world. However, by 2018, the index growth has been more moderate at around the 22,000 mark.

There is concern that the rise since 2013 is artificial and due to purchases by the Bank of Japan ("BOJ").[7][8] From a start in 2013, by end 2017, The BOJ owned circa 75%[9] of all Japanese Exchange Traded Funds ("ETFs"), and are a top 10 shareholder of 90% of the Nikkei 225 constituents.[10][11]

On February 15, 2021, the Nikkei average breached the 30,000 benchmark, its highest level in 30 years, due to the levels of monetary stimulus and asset purchase programs executed by the Bank of Japan to mitigate the financial effects of the COVID-19 pandemic.[12]

The index is a price-weighted index. As of early 2022, the company with the largest influence on the index is Fast Retailing (TYO: 9983).

The Nikkei 225 is traded as a future on the Osaka exchange. The contract specifications for the Nikkei 225 (ticker symbol JNK) are listed below:

The following table shows the annual development of the Nikkei 225, which was calculated back to 1914.[14][15][16]

As of October 2023, the Nikkei 225 consists of the following companies: (Japanese securities identification code in parentheses)[17]

• S&P/TOPIX 150

• Nikkei 225 Components — official website at indexes.Nikkei.co.jp
• Index detail: Nikkei Stock Average 225 — at Reuters
• Nikkei 225 page – NKY:IND — on Bloomberg Markets
• Nikkei 225 index — on Google Finance
• Nikkei 225 index — on Yahoo! Finance
• Nikkei 225 index — on Hargreaves Lansdown
• Nikkei 225 profile — at Wikinvest