The Nikkei 225 is Japan's most widely followed stock market index and one of the most important benchmarks in Asia.
Key Facts
- Components: 225 companies
- Methodology: Price-weighted (like Dow Jones)
- Exchange: Tokyo Stock Exchange (TSE)
- Published by: Nihon Keizai Shimbun (Nikkei newspaper)
Top Components
Fast Retailing (Uniqlo), Tokyo Electron, SoftBank Group, Daikin Industries, KDDI
Price-Weighted Peculiarity
Unlike most indices which are market-cap weighted, the Nikkei is price-weighted. This means stocks with higher share prices (like Fast Retailing at ~35,000 yen) have more influence than larger companies with lower share prices.
Historical Journey
- 1989 peak: 38,957 (bubble era)
- 2009 low: 7,054 (post-GFC)
- 2024: Surpassed 1989 record after 34 years
The Nikkei's recovery from its 1989 bubble is one of the most dramatic stories in financial history.