Nikkei 225

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Nikkei 225
Nikkei 225(1970-).svg
Foundation7 September 1950; 71 years ago (1950-09-07)
OperatorNihon Keizai Shimbun
(The Nikkei)
(Nikkei, Inc.)
ExchangesTokyo Stock Exchange (TSE)
Constituents225
Weighting methodPrice-weighted index
Related indicesTokyo Stock Price Index (TOPIX)
WebsiteNikkei 225

The Nikkei 225, or the Nikkei Stock Average (日経平均株価, Nikkei heikin kabuka), more commonly called the Nikkei or the Nikkei index[1][2] (/ˈnɪk, ˈn-, nɪˈk/), is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (The Nikkei) newspaper since 1950. It is a price-weighted index, operating in the Japanese Yen (JP¥), and its components are reviewed once a year. The Nikkei measures the performance of 225 large, publicly owned companies in Japan from a wide array of industry sectors.[3]

Another major index for the Tokyo Stock Exchange is the Tokyo Stock Price Index (TOPIX).

History[]

The Nikkei 225 began to be calculated on 7 September 1950; 71 years ago (1950-09-07), retroactively calculated back to 16 May 1949. 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 recognised 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, closing at 7,054.98 on 10 March 2009 — 81.9% below its peak nearly twenty years earlier.[citation needed]

On 15 March 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 25 November, putting it at its lowest close since 31 March 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.[5]

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 indexes in the world. However, by 2018, the index growth has been more moderate at around the 22,000 mark.[citation needed]

There is concern that the rise since 2013 is artificial and due to purchases by the Bank of Japan ("BOJ").[6][7] From a start in 2013, by end 2017, The BOJ owned circa 75%[8] of all Japanese Exchange Traded Funds ("ETFs"), and are a top 10 shareholder of 90% of the Nikkei 225 constituents.[9][10]

On February 15, 2021, the Nikkei average breached the 30,000 benchmark, [11] its highest level in 30 years, due to the levels of monetary stimulous and asset purchase programs executed by the Bank of Japan to combat the finacial effects of the global coronavirus pandemic.[11]

Weighting[]

The index is a price-weighted index. As of late 2014, the company with the largest influence on the index is Fast Retailing (TYO: 9983).

Annual returns[]

The following table shows the annual development of the Nikkei 225, which was calculated back to 1914.[12][13][14]

Year Closing level Change in Index
in Points
Change in Index
in %
1914 21.12
1915 32.10 10.98 51.99
1916 41.61 9.51 29.63
1917 41.40 −0.21 −0.50
1918 42.21 0.81 1.96
1919 53.63 11.42 27.06
1920 27.44 −26.19 −48.83
1921 28.88 1.44 5.25
1922 23.97 −4.91 −17.00
1923 22.83 −1.14 −4.76
1924 24.45 1.62 7.10
1925 27.96 3.51 14.36
1926 27.25 −0.71 −2.54
1927 25.82 −1.43 −5.25
1928 25.65 −0.17 −0.66
1929 21.32 −4.33 −16.88
1930 16.82 −4.50 −21.11
1931 16.28 −0.54 −3.21
1932 30.33 14.05 86.30
1933 34.12 3.79 12.50
1934 32.30 −1.82 −5.33
1935 33.76 1.46 4.52
1936 35.94 2.18 6.46
1937 37.33 1.39 3.87
1938 33.66 −3.67 −9.83
1939 44.96 11.30 33.57
1940 37.42 −7.54 −16.77
1941 42.44 5.02 13.42
1942 42.71 0.27 0.64
1943 42.11 −0.60 −1.40
1944 41.82 −0.29 −0.69
1945 40.53 −1.29 −3.08
1946 28.72 −11.81 −29.14
1947 39.31 10.59 36.87
1948 72.84 33.53 85.30
1949 109.91 37.07 50.89
1950 101.91 −8.00 −7.28
1951 166.06 64.15 62.95
1952 362.64 196.58 118.38
1953 377.95 15.31 4.22
1954 356.09 −21.86 −5.78
1955 425.69 69.60 19.55
1956 549.14 123.45 29.00
1957 474.55 −74.59 −13.58
1958 666.54 191.99 40.46
1959 874.88 208.34 31.26
1960 1,356.71 481.83 55.07
1961 1,432.60 75.89 5.59
1962 1,420.43 −12.17 −0.85
1963 1,225.10 −195.33 −13.75
1964 1,216.55 −8.55 −0.70
1965 1,417.83 201.28 16.55
1966 1,452.10 34.27 2.42
1967 1,283.47 −168.63 −11.61
1968 1,714.89 431.42 33.61
1969 2,358.96 644.07 37.56
1970 1,987.14 −371.82 −15.76
1971 2,713.74 726.60 36.57
1972 5,207.94 2,494.20 91.91
1973 4,306.80 −901.14 −17.30
1974 3,817.22 −489.58 −11.37
1975 4,358.60 541.38 14.18
1976 4,990.85 632.25 14.51
1977 4,865.60 −125.25 −2.51
1978 6,001.85 1,136.25 23.35
1979 6,569.47 567.62 9.46
1980 7,116.38 546.91 8.33
1981 7,681.84 565.46 7.95
1982 8,016.67 334.83 4.36
1983 9,893.82 1,877.15 23.42
1984 11,542.60 1,648.78 16.66
1985 13,113.32 1,570.72 13.61
1986 18,701.30 5,587.98 42.61
1987 21,564.00 2,862.70 15.31
1988 30,159.00 8,595.00 39.86
1989 38,915.87 8,756.87 29.04
1990 23,848.71 −15,067.16 −38.72
1991 22,983.77 −864.94 −3.63
1992 16,924.95 −6,058.82 −26.36
1993 17,417.24 492.29 2.91
1994 19,723.06 2,305.82 13.24
1995 19,868.15 145.09 0.74
1996 19,361.35 −506.80 −2.55
1997 15,258.74 −4,102.61 −21.19
1998 13,842.17 −1.416,57 −9.28
1999 18,934.34 5,092.17 36.79
2000 13,785.69 −5,148.65 −27.19
2001 10,542.62 −3,243.07 −23.52
2002 8,578.95 −1,963.67 −18.63
2003 10,676.64 2,097.69 24.45
2004 11,488.76 812.12 7.61
2005 16,111.43 4,622.67 40.24
2006 17,225.83 1,114.40 6.92
2007 15,307.78 −1,918.05 −11.13
2008 8,859.56 −6,448.22 −42.12
2009 10,546.44 1,686.88 19.04
2010 10,228.92 −317.52 −3.01
2011 8,455.35 −1,773.57 −17.24
2012 10,395.18 1,939.83 22.94
2013 16,291.31 5,896.13 56.72
2014 17,450.77 1,159.46 7.12
2015 19,033.71 1,582.94 9.07
2016 19,114.40 80.69 0.42
2017 22,764.94 3,650.54 19.10
2018 20,014.77 −2,750.17 −12.08
2019 23,656.62 3,641.85 18.20
2020 27,444.17 3,787.55 16.01

Components[]

As of October 2020, the Nikkei 225 consists of the following companies: (Japanese securities identification code in parentheses)[15]

Fishery[]

Mining[]

  • Inpex Corp. (TYO: 1605)

Construction[]

  • Comsys Holdings Corp. (TYO: 1721)
  • Daiwa House Industry Co., Ltd. (TYO: 1925)
  • Haseko Corp. (TYO: 1808)
  • JGC Corporation (TYO: 1963)
  • Kajima Corp. (TYO: 1812)
  • Obayashi Corp. (TYO: 1802)
  • Sekisui House, Ltd. (TYO: 1928)
  • Shimizu Corp. (TYO: 1803)
  • Taisei Corp. (TYO: 1801)

Foods[]

Textiles & apparel[]

  • Teijin Ltd. (TYO: 3401)
  • Toray Industries, Inc. (TYO: 3402)
  • Toyobo Co., Ltd. (TYO: 3101)
  • Unitika, Ltd. (TYO: 3103)

Pulp & paper[]

  • Nippon Paper Group, Inc. (TYO: 3863)
  • Oji Paper Co., Ltd. (TYO: 3861)

Chemicals[]

  • Asahi Kasei Corp. (TYO: 3407)
  • Denki Kagaku Kogyo K.K. (TYO: 4061)
  • DIC Corporation (TYO: 4631)
  • Fujifilm Holdings Corp. (TYO: 4901)
  • Kao Corp. (TYO: 4452)
  • Kuraray Co., Ltd. (TYO: 3405)
  • Mitsubishi Chemical Holdings Corp. (TYO: 4188)
  • Mitsui Chemicals, Inc. (TYO: 4183)
  • Nissan Chemical Industries, Ltd. (TYO: 4021)
  • Nitto Denko (TYO: 6988)
  • Shin-Etsu Chemical Co., Ltd. (TYO: 4063)
  • Shiseido Co., Ltd. (TYO: 4911)
  • Showa Denko K.K. (TYO: 4004)
  • Sumitomo Chemical Co., Ltd. (TYO: 4005)
  • Tokuyama Corporation (TYO: 4043)
  • Tosoh Corp. (TYO: 4042)
  • Ube Industries, Ltd. (TYO: 4208)

Pharmaceuticals[]

  • Astellas Pharma Inc. (TYO: 4503)
  • Chugai Pharmaceutical Co., Ltd. (TYO: 4519)
  • Daiichi Sankyo Co., Ltd. (TYO: 4568)
  • Sumitomo Dainippon Pharma Co., Ltd. (TYO: 4506)
  • Eisai Co., Ltd. (TYO: 4523)
  • Kyowa Hakko Kirin Co., Ltd. (TYO: 4151)
  • Otsuka Holdings Co. Co., Ltd. (TYO: 4578)
  • Shionogi & Co., Ltd. (TYO: 4507)
  • Takeda Pharmaceutical Company, Ltd. (TYO: 4502)

Petroleum[]

  • Eneos Holdings (TYO: 5020)
  • Idemitsu Kosan Co., Ltd (TYO: 5019)

Rubber[]

  • Bridgestone Corp. (TYO: 5108)
  • The Yokohama Rubber Co., Ltd. (TYO: 5101)

Glass & Ceramics[]

  • AGC Inc. (TYO: 5201)
  • NGK Insulators, Ltd. (TYO: 5333)
  • Nippon Electric Glass Co., Ltd. (TYO: 5214)
  • Nippon Sheet Glass Co., Ltd. (TYO: 5202)
  • Sumitomo Osaka Cement Co., Ltd. (TYO: 5232)
  • Taiheiyo Cement Corp. (TYO: 5233)
  • Tokai Carbon Co., Ltd. (TYO: 5301)
  • Toto Ltd. (TYO: 5332)

Steel[]

  • JFE Holdings, Inc. (TYO: 5411)
  • Kobe Steel, Ltd. (TYO: 5406)
  • Nippon Steel Corp. (TYO: 5401)
  • Pacific Metals Co., Ltd. (TYO: 5541)

Nonferrous metals[]

  • Dowa Holdings Co., Ltd. (TYO: 5714)
  • Fujikura Ltd. (TYO: 5803)
  • The Furukawa Electric Co., Ltd. (TYO: 5801)
  • Mitsubishi Materials Corp. (TYO: 5711)
  • Mitsui Mining & Smelting Co., Ltd. (TYO: 5706)
  • Nippon Light Metal Co., Ltd (TYO: 5703)
  • SUMCO Corp. (TYO: 3436)
  • Sumitomo Electric Industries, Ltd. (TYO: 5802)
  • Sumitomo Metal Mining Co., Ltd. (TYO: 5713)
  • Toho Zinc Co., Ltd. (TYO: 5707)
  • Toyo Seikan Kaisha, Ltd. (TYO: 5901)

Machinery[]

  • Amada Co. Ltd. (TYO: 6113)
  • Daikin Industries, Ltd. (TYO: 6367)
  • Ebara Corp. (TYO: 6361)
  • Hitachi Construction Machinery Co., Ltd. (TYO: 6305)
  • Hitachi Zōsen Corporation (TYO: 7004)
  • IHI Corp. (TYO: 7013)
  • The Japan Steel Works, Ltd. (TYO: 5631)
  • JTEKT Corp. (TYO: 6473)
  • Komatsu Ltd. (TYO: 6301)
  • Kubota Corp. (TYO: 6326)
  • Mitsubishi Heavy Industries, Ltd. (TYO: 7011)
  • NSK Ltd. (TYO: 6471)
  • NTN Corp. (TYO: 6472)
  • Okuma Holdings, Inc. (TYO: 6103)
  • Sumitomo Heavy Industries, Ltd. (TYO: 6302)

Electric machinery[]

  • Advantest Corp. (TYO: 6857)
  • Alps Electric Co., Ltd. (TYO: 6770)
  • Canon Inc. (TYO: 7751)
  • Casio Computer Co., Ltd. (TYO: 6952)
  • Dainippon Screen Mfg. Co., Ltd. (TYO: 7735)
  • Denso Corp. (TYO: 6902)
  • FANUC Corp. (TYO: 6954)
  • Fuji Electric Co., Ltd. (TYO: 6504)
  • Fujitsu Ltd. (TYO: 6702)
  • GS Yuasa Corp. (TYO: 6674)
  • Hitachi, Ltd. (TYO: 6501)
  • Kyocera Corp. (TYO: 6971)
  • MinebeaMitsumi, Inc. (TYO: 6479)
  • Mitsubishi Electric Corp. (TYO: 6503)
  • NEC Corp. (TYO: 6701)
  • Nisshinbo Holdings Inc. (TYO: 3105)
  • Oki Electric Industry Co., Ltd. (TYO: 6703)
  • Omron Corp. (TYO: 6645)
  • Panasonic Corp. (TYO: 6752)
  • Ricoh Co., Ltd. (TYO: 7752)
  • Seiko Epson Corp. (TYO: 6724)
  • Sharp Corp. (TYO: 6753)
  • Sony Corp. (TYO: 6758)
  • Taiyo Yuden Co., Ltd. (TYO: 6976)
  • TDK Corp. (TYO: 6762)
  • Tokyo Electron Ltd. (TYO: 8035)
  • Yaskawa Electric Corporation, Limited (TYO: 6506)
  • Yokogawa Electric Corp. (TYO: 6841)

Shipbuilding[]

Automotive[]

  • Hino Motors, Ltd. (TYO: 7205)
  • Honda Motor Co., Ltd. (TYO: 7267)
  • Isuzu Motors Ltd. (TYO: 7202)
  • Mazda Motor Corp. (TYO: 7261)
  • Mitsubishi Motors Corp. (TYO: 7211)
  • Nissan Motor Co., Ltd. (TYO: 7201)
  • Subaru Corp. (TYO: 7270)
  • Suzuki Motor Corp. (TYO: 7269)
  • Toyota Motor Corp. (TYO: 7203)
  • Yamaha Motor Corp. (TYO: 7272)

Precision instruments[]

  • Citizen Watch Co., Ltd. (TYO: 7762)
  • Konica Minolta Holdings, Inc. (TYO: 4902)
  • Nikon Corp. (TYO: 7731)
  • Olympus Corp. (TYO: 7733)
  • Terumo Corp. (TYO: 4543)

Trading companies[]

Other manufacturing[]

Retail[]

Banking[]

  • Aozora Bank, Ltd. (TYO: 8304)
  • The Chiba Bank, Ltd. (TYO: 8331)
  • Concordia Financial Group, Inc. (TYO: 7186)
  • Sumitomo Mitsui Trust Holdings, Inc. (TYO: 8309)
  • Fukuoka Financial Group, Inc. (TYO: 8354)
  • Mitsubishi UFJ Financial Group, Inc. (TYO: 8306)
  • Mizuho Financial Group, Inc. (TYO: 8411)
  • Resona Holdings, Inc. (TYO: 8308)
  • Shinsei Bank, Ltd. (TYO: 8303)
  • The Shizuoka Bank, Ltd. (TYO: 8355)
  • Sumitomo Mitsui Financial Group, Inc. (TYO: 8316)

Securities[]

Insurance[]

Other financial services[]

Real estate[]

Railway/bus[]

  • Central Japan Railway Company (TYO: 9022)
  • East Japan Railway Company (TYO: 9020)
  • Keio Corp. (TYO: 9008)
  • Keisei Electric Railway Co., Ltd. (TYO: 9009)
  • Odakyu Electric Railway Co., Ltd. (TYO: 9007)
  • Tobu Railway Co., Ltd. (TYO: 9001)
  • Tokyu Corp. (TYO: 9005)
  • West Japan Railway Company (TYO: 9021)

Land transport[]

  • Nippon Express Co., Ltd. (TYO: 9062)
  • Yamato Holdings Co., Ltd. (TYO: 9064)

Marine transport[]

  • Kawasaki Kisen Kaisha, Ltd. (TYO: 9107)
  • Mitsui O.S.K. Lines, Ltd. (TYO: 9104)
  • Nippon Yusen K.K. (TYO: 9101)

Air transport[]

  • All Nippon Airways Co., Ltd. (TYO: 9202)

Warehousing[]

Communications[]

Electric power[]

  • Chubu Electric Power Co., Inc. (TYO: 9502)
  • The Kansai Electric Power Co., Inc. (TYO: 9503)
  • Tokyo Electric Power Company Holdings, Incorporated (TYO: 9501)

Gas[]

  • Osaka Gas Co., Ltd. (TYO: 9532)
  • Tokyo Gas Co., Ltd. (TYO: 9531)

Services[]

  • Cyberagent Inc. (TYO: 4751)
  • Dena Co., Ltd. (TYO: 2432)
  • Dentsu Inc. (TYO: 4324)
  • Japan Post Holdings Co., Ltd. (TYO: 6178)
  • Konami Corp. (TYO: 9766)
  • M3 Inc. (TYO: 2413)
  • Nexon Co., Ltd. (TYO: 3659)
  • Rakuten Inc. (TYO: 4755)
  • Recruit Holdings Co., Ltd. (TYO: 6098)
  • Secom Co., Ltd. (TYO: 9735)
  • Toho Co., Ltd. (TYO: 9602)
  • Trend Micro Inc. (TYO: 4704)
  • Z Holdings Corp. (TYO: 4689)

See also[]

References[]

  1. ^ "the Nikkei (index) definition, meaning - what is the Nikkei (index) in the British English Dictionary & Thesaurus". cambridge.org. Cambridge Dictionaries Online.
  2. ^ "Nikkei 225". Yahoo.com. Yahoo. Archived from the original on 12 December 2011.
  3. ^ "Overview of the Nikkei 225 Stock Market Index". Archived from the original on 1 November 2018. Retrieved 28 October 2019.
  4. ^ Nikkei Net interactive Archived 22 December 2008 at the Wayback Machine
  5. ^ "Finfacts: Irish business, finance news on economics". FinFacts.com. Archived from the original on 28 October 2019.[failed verification][unreliable source?]
  6. ^ "Japan Central Bank's ETF Shopping Spree Is Becoming a Worry". Bloomberg. 18 July 2017.
  7. ^ "Japan's Central Bank Is Distorting the Market, Bourse Chief Says". Bloomberg. 19 July 2017.
  8. ^ "Bank of Japan's $150 Billion ETF Binge Looks Likely to Slow Next Year". Bloomberg. 10 December 2017.
  9. ^ "BoJ Now A Top 10 Shareholder In 90% Of Nikkei 225". Barrons. 24 April 2017.
  10. ^ "What Happens When The Bank Of Japan Owns Everything?". Forbes. 27 April 2016.
  11. ^ Jump up to: a b "Nikkei index hits 30,000 for first time in three decades". Nikkei. 15 February 2021. Archived from the original on 15 February 2021.
  12. ^ "Finfacts: Irish business, finance news on economics". www.finfacts.com. Archived from the original on 28 October 2019. Retrieved 19 January 2020.
  13. ^ "Historical Data (Nikkei 225) - Nikkei Indexes". indexes.nikkei.co.jp. Retrieved 19 January 2020.
  14. ^ "NIKKEI 225 Index (Japan) Yearly Stock Returns". www.1stock1.com. Archived from the original on 17 July 2019. Retrieved 19 January 2020.
  15. ^ "Components:Nikkei Stock Average (Nikkei 225)". Nikkei Indexes. 24 April 2018.

External links[]

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