Nikkei Stock Average (Nikkei 225)

Overview

The Nikkei Stock Average, the Nikkei 225 is used around the globe as the premier index of Japanese stocks. More than 70 years have passed since the commencement of its calculation, which represents the history of Japanese economy after the World War II. Because of the prominent nature of the index, many financial products linked to the Nikkei 225 have been created and are traded worldwide while the index has been sufficiently used as the indicator of the movement of Japanese stock markets. The Nikkei 225 is a price-weighted equity index, which consists of 225 stocks in the Prime Market of the Tokyo Stock Exchange.

• Chart
• Constituents
  The Nikkei 225 is comprised of 225 stocks selected from domestic common stocks in the Prime Market of the Tokyo Stock Exchange.
• Periodic review
  Semi-Annually (April and October)
• Selection rules
  • The selection shall be conducted based on the two factors, “liquidity” and “sector balance” (Nikkei introduces 6 sectors categories consolidated from the 36 Nikkei industrial classifications)
  • When a component is delisted due to its bankruptcy and the reorganization of its company group etc, the stock would be deleted from the index and a new component would be added, following the procedure of the Extraordinary Replacement.
• Number of constituents
  225
• Calculation frequency
  Real time (every 5 seconds)
• Commencement date
  September/07/1950
• Inception date
  May/16/1949