A stock index is a changing indicator that reflects the current state of a certain basket of securities, as well as market trends. For the Japanese stock market, the key indicator is the Nikkei 225 (Nikkei Heikin Kabuka). By analogy with other indices, Nikkei 225 takes into account the state of the shares of the 225 most active Japanese companies, which are listed in the first section of the Tokyo Stock Exchange.
There are several popular indexes. Among them, one can single out DAX 30 , which takes into account the state of 30 major players the German market, Dow Jones 65 - a similar index for 65 companies in the US, S & P500 - an index of 500 companies with the largest capitalization in America, and so on. On the stock exchange, indices are formed by changing the stock prices of selected companies.
The Nikkei 225 index is rightfully considered a "long-liver" in the Asian stock exchange region. It was first calculated in September 1950 by the Tokyo Stock Exchange. The starting date for the index with an indicator of 100 was decided to be the opening date of the Tokyo Stock Exchange after the Second World War. In 1970, the Nihon Keizai Shimbun newspaper took up its calculation, from the abbreviated name of which the modern name "Nikkei" went.
Unlike a number of more complex world indexes, Nikkei is calculated relatively simply - the share price of all its participants is added together, and then divided by a floating number of participants. In other words, the arithmetic mean is found, which displays the current index. By this, he repeats the method of calculating another well-known Dow Jones index.
While the DAX 30 index is calculated every second, the Nikkei 225 updates the index every 15 seconds. Due to the difference in time zones, the index is traded overnight for European countries time.
In addition to the Nikkei 225, the index has several intuitive varieties - All Stock Index, 300 and 500. The last two take into account the stock quotes of 300 and 500 Japanese companies, and the first one - the shares of all participants in the Tokyo Stock Exchange.
The Nikkei 225 remains the most popular and in demand, as it is considered to be the most indicative indicator of the state of the Japanese economy. As of 2016, the total capitalization of the 225 participants in the Tokyo Stock Exchange was almost $5 trillion.
Already in the 80s, modern Japan took a leading position in certain industries - most of the companies participating in the formation of the index are engaged in these areas. We are talking, first of all, about manufacturers of computer and digital goods, automotive concerns, manufacturers of household appliances.
Companies that have been among the 225 largest in Japan for many years are the well-known Toyota Motor Corp., Honda Motor Co., Sony Corp., Panasonic Corp., Mazda, Japanese banks and others. In the index, you can often see companies engaged in the field of innovation and revolutionary technologies, which in a few years turn from small offices into multi-million dollar corporations.
The main indicator of the Tokyo Stock Exchange can be used in different ways: for trading options and futures, as well as exchange-traded funds. As practice shows, the Nikkei 225 index is often characterized by jerky movements and large gaps, as well as the ability to recover from crises, of which there have been many in the history of the Tokyo Stock Exchange. Regarding the level of diversification, today the index is considered one of the best.
The stability of the index is ensured by the presence of real sector companies. As with other similar indices, the Nikkei 225 is under pressure from lower consumption volumes. In addition, the index is subject to pressure from the Asian crisis.
Traders rarely stop looking for new, more promising instruments, strategies, companies, and so on. This state of affairs is completely natural, since trading in Forex and other financial markets has never been stable, which means that a successful trader must constantly look for new opportunities and tirelessly improve his professional quality. This article will describe one of the very interesting and relatively easy to predict trading tools - the nikkei index.
What is this nikkei index and how it can be useful for traders. In the modern version, it would even be correct to use its other name, which corresponds to current economic realities. The fact is that traders in most cases use the main version of this instrument, now known as the nikkei 225 index, and it is a reflection of the state of the most promising companies in Japan, which, as indicated by the digital prefix, there are currently two hundred and twenty five.
Due to such significant coverage, the nikkei index acts as a powerful indicator that displays economic condition Land of the Rising Sun. In terms of their importance and role in stock market this trading instrument can be compared with its American counterpart - the dow jones index.
For the first time, the nikkei index was introduced to the attention of traders in 1950, according to which it is the oldest economic indicator in the Asian region. This tool owes its name to a very respected in its time printed edition of Japan, which clarified the events financial markets and presented nikkei to the world community. By the way, it was this publication that began to calculate and publish the value of the index, which was watched with interest by all economists in the world.
The values of this most important stock indicator are calculated as the simplest arithmetic mean. That is, the value of the shares of all incoming companies is summed up and divided by their number. The digital equivalent of the final calculations changes every quarter of a minute during the operation of the Tokyo Stock Exchange, which is the largest stock trading platform in the Asian region.
In total, four varieties of this instrument are distinguished: Nikkei All Stock Index, Nikkei Stock Index 300, Nikkei 500 and Nikkei 225. The first two are the average weighted value, respectively, of all and 300 companies doing business in Japan. The other two represent the arithmetic average of 500 and 225 corporations that are in the first section of the Tokyo Stock Exchange. The latter option is recognized as the most popular, since it allows you to easily and simply track important changes in the state of the Japanese economy, which makes it a kind of barometer that foreshadows the "weather" in the financial markets.
Read also:
Companies included in the nikkei 225 index cover 36 different types economic activity, which allows you to determine changes in the exchange rate of the Japanese currency by changing its indicators. Among the market segments covered are electronics and household goods, Financial services and high technology, transport in materials, and much more. The percentage of shares of companies within the index under consideration, which regularly delight the world with the latest technologies, exceeds 41%.
If we consider individual representatives, whose shares determine the rate of the index, then these are world-famous brands, such as:
The list, of course, is incomplete, but it is easy to judge the significance of the nikkei index from it.
Today in the world you can find many trading tools that allow you to use the Japanese nikkei index to earn money. We are talking about trading options and futures, CFDs and ETFs - exchange-traded funds.
The basis of trading is the base index Nikkei 225, presented on the largest stock exchanges in the form of futures contracts on the stock index. It is traded on the Chicago and Osaka exchanges, as well as in Singapore - Singapore Exchange. Working in this form provides an opportunity to buy or sell a trading instrument for investors who use a futures contract with a predetermined price and date. With its help, it is convenient to speculate or hedge risks, so nikkei is in demand and, accordingly, a rather volatile instrument that provides good opportunities for earning.
It is very convenient to work with this tool on large timeframes using trend-following strategies. Naturally, you need to pay attention to the fundamental background, as it finds an instant display on the index quotes and it would be simply stupid not to take this fact into account. As mentioned above, this tool is a reflection of the state of the Japanese economy, which means that it is in direct correlation with the yen exchange rate, which should not be forgotten either.
In addition, a set of indicators was developed to predict the nikkei index, which turned into a very good trading system that generates market entries very accurately and therefore brings good profits. We are talking about the Ichimoku indicator, which was specially developed taking into account the specifics of the movement of the Nikkei exchange rate.
Good day!
So we got to the East. The Nikkei 225 Index is the main Japanese stock index. Since we have now moved to Asia, it is worth noting that it is the central index of Asian markets, which, of course, is of interest to the investor. Nikkei can even influence the exchange rate of Asian currencies. But first things first.
In fact, Nikkei is a reflection of the state of Japanese industry, since most of the companies included in it are large-scale industries. Their number is defined as 225. Thanks to the explosive post-war development of the Japanese economy, many of the participants in the index entered the world stage, where they still remain.
This factor also contributed to the fact that the Nikkei 225 caught up in popularity with the American Dow Jones. The main role in Nikkei is played by companies whose total share value and, accordingly, capitalization is higher.
On the Nikkei chart, the difference between calm Europe, measured America and Japan is immediately noticeable. The Nikkei 225 moves sharply and quickly, its online chart of quotes looks more like battlements of an old castle than the smooth course of a stock asset, to which the European eye is accustomed.
The Nikkei index brings together 225 leading Japanese companies from over 30 industries. It is remarkable in that most of them belong to the real sector of the economy, which means the stability and longevity of the Nikkei. Among them are dozens of well-known world leaders such as Mitsubishi Corp., Mazda Motor, Honda Motor, Isuzu Motors, Kikkoman Corp., Nissan Motor, Hitachi, Sony, Canon and many others.
Therefore, Nikkei 225 is so loved by traders from all over the world. In addition, its high volatility is a good opportunity to earn, if approached with a certain degree of caution.
The leaders of Nikkei in percentage terms among the participants at the moment are Mizuho Financial, Mitsubishi UFJ Financial Group, Nomura, Panasonic, Tokyo Electric Power, Resona Holdings.
The list of companies included in the Nikkei 225 index is reviewed once a year, in September, but very limited - no more than 6 at a time. This, of course, is a purely conservative approach, given the explosive growth of Asian markets.
This index has been familiar to us since 1950. It was in this year that the Nikkei first appeared on the Tokyo Stock Exchange. At that time, he was not quite the way he is known. This indicator was called TSE Adjusted Stock Price Average. The countdown of quotations began in May 1949 (starting price 100 points).
The Nikkei acquired its current name in 1970. It is the abbreviation of the Nihon Keizai Shimbun newspaper that publishes it.
Along with the Nikkei 225, its subspecies are popular:
The Nikkei 225 quotes chart speaks for itself - this is a very frisky "horse". And until 1990, she quickly galloped up. Surely a lot of venerable investors managed to significantly increase their capital on this "run" Nikkei. In December 1989, an all-time high was set at around 38,957 points.
However, since January 1990, the index has fallen at the same rate. Having reached a low value of 14194 in August 1992, the Nikkei turned around again, and also sharply. Then there was a series of ups and downs, as a result of which the index periodically updated the bottoms. The historical minimum was recorded in April 2003 - 7607 points.
Since the fall of 2012, the Nikkei 225 has gone up again and fed investors' hopes. Although the Nikkei has been somewhat stalled around 23000 lately, the overall trend remains bullish and the instrument itself attractive.
Speaking about the method by which it is customary to calculate the Nikkei, we can safely mention Dow Jones, since this is his exact copy. It was the Americans who, in 1975, suggested that the Japanese adopt the same formula for their key indicator that is used for the Nikkei opponent in the USA. It seems that no one spoke out against it.
Since then, the Nikkei index is calculated by the arithmetic mean:
It turns out that the value of shares and their number in circulation are important for the calculation. That is, the most important influence in percentage terms is exerted by companies with the largest capitalization.
Stock quotes of the Nikkei 225 index change every 15 seconds in real time.
When you risk making money on the Nikkei 225, don't forget about its pros and cons.
Pluses draw a tempting prospect:
Well, a fly in the ointment in the form of minuses of this tool:
Nikkei 225 is available for trading on four platforms:
So you can trade this instrument through:
Rick Keith Opening CapTrader Exante
As instruments for working with Nikkei, you can choose futures or ETFs. Of the latter, the largest are:
I can not ignore this burning topic.
Everything seems to be simple - free cheese is only in a mousetrap. But no, there are thousands (I'm afraid to talk about a larger number) of those who believe in instant earnings such as binary options and trading in forex "kitchens" of various kinds. Well, just a win-win lottery for suckers!
Comrade investors, you are all adults, so ask yourself a question - what is the benefit of the so-called broker who trades binary options? Here I constantly draw comparisons with online casinos. Is it beneficial for the casino owner that you win from time to time? Is he interested in his clients taking away a lot of money every day?
These brokers also work like a casino. It really is. Why don't you bring your hard-earned money to the casino, but bring it to "optioners" and organizers of forex "kitchens"? After all, there is no difference between them - and the meaning of the work is the same, and advertising is similar. Clear as daylight.
Therefore, let's unite and unanimously deprive these extortionists of earnings. At least we won’t stand in a long line called “but I was warned.”
The Japanese are a very progressive nation, which is why the companies that make up the Nikkei index are also leading in the field of innovation. As such, there are many high-growth businesses to be seen here, which also has a positive impact on the outlook for the Nikkei 225.
The full modern name is the Nikkei Stock Average.
The dynamics of quotes of the popular Japanese Nikkei 225 index is influenced by the following factors:
The Nikkei index itself is quite stable and at times shows good growth even against the backdrop of negative news.
If you are not confused by the “jagged” pattern of quotes for this instrument, feel free to add it to your cart. Like most Japanese indices, the Nikkei is very volatile and therefore provides good opportunities for earnings.
The Nikkei 225 is Japan's most popular stock index, sort of like the Asian Dow Jones. For this reason alone, it is worth investing in. Nikkei is really promising, with good movement and power reserve to the top. But with a sudden drawdown, you need to be careful.
This section presents, with the help of the presented NIKKEI 225 chart, you can find out real-time quotes. Refresh page from NIKKEI 225 chart online no need everything happens automatically in real time. Do not forget to save the page to your favorites so that you can always quickly open the Nikkei index page online if necessary.
The Nikkei index is the most important Japanese stock index, and it is quite interesting that the index used to have a long name and only since 1970 is called from the name of a newspaper. The index includes 225 companies, and the index itself is calculated as the arithmetic average of the prices for these shares. On the graph below, you can see the values Index NIKKEI 225 online in real time.
Online nikkei index
As we noted above, this is the stock index, which is the most important for Japan. The index includes 225 companies, but once a year the list of these companies is reviewed. The stock index itself has been calculated by the newspaper since 1970, the newspaper is called Nihon Keizai Shimbun, which is where the name NIKKEI came from.
Periodically, we publish forecasts for the Japanese nikkei index as part of the current market situation. So if you are interested NIKKEI 225 chart, as well as forecasts for this index, we recommend that you visit our website more often in the section
