Difference between revisions of "Nikkei 225"

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The Nikkei 225 Stock Average is a price-weighted average of the top 225 Japanese companies in the First Section of the [[Tokyo Stock Exchange]] and was first published by the Nihon Keizai Shimbun ("Nikkei") newspaper in 1949.<ref>{{cite web|url=http://www.bloomberg.com/apps/quote?ticker=NKY:IND|name=Nikkei 225 Stock Average|org=Bloomberg|date=May 29, 2008}}</ref> Its closest competitor is the [[S&P/TOPIX 150]], an index represents 150 highly liquid, large-cap Japanese stocks and 70% of total equities market value.<ref>{{cite web|url=http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_topix150/2,3,2,7,0,0,0,0,0,2,1,0,0,0,0,0.html|name=S&P/TOPIX 150 Overview|org=Standard & Poors|date=May 29, 2008}}</ref>
 
The Nikkei 225 Stock Average is a price-weighted average of the top 225 Japanese companies in the First Section of the [[Tokyo Stock Exchange]] and was first published by the Nihon Keizai Shimbun ("Nikkei") newspaper in 1949.<ref>{{cite web|url=http://www.bloomberg.com/apps/quote?ticker=NKY:IND|name=Nikkei 225 Stock Average|org=Bloomberg|date=May 29, 2008}}</ref> Its closest competitor is the [[S&P/TOPIX 150]], an index represents 150 highly liquid, large-cap Japanese stocks and 70% of total equities market value.<ref>{{cite web|url=http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_topix150/2,3,2,7,0,0,0,0,0,2,1,0,0,0,0,0.html|name=S&P/TOPIX 150 Overview|org=Standard & Poors|date=May 29, 2008}}</ref>
  
Movements in the Nikkei 225 are nowadays more closely correlated with the yield for 10-year [[U.S. Treasury bills]] than with any other non-Japanese market factor, according to one analysis.<ref>{{cite web|url=http://seekingalpha.com/article/69662-nikkei-225-will-turn-when-u-s-treasuries-do|name=Nikkei 225 Will Turn When U.S Treasuries Do|org=SeekingAlpha.com|date=May 29, 2008}}</ref> Downward pressure on T-bill yields such as lower Federal Reserve interest rates is currently also holding down the Nikkei 225, the author argues, which will rise when 10-year T-bill yields go north.  
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Movements in the Nikkei 225 are nowadays more closely correlated with the yield for 10-year [[U.S. Treasury bills]] than with any other non-Japanese market factor, according to one analysis.<ref>{{cite web|url=http://seekingalpha.com/article/69662-nikkei-225-will-turn-when-u-s-treasuries-do|name=Nikkei 225 Will Turn When U.S Treasuries Do|org=SeekingAlpha.com|date=May 29, 2008}}</ref> Downward pressure on T-bill yields such as lower [[Federal Reserve]] interest rates is currently also holding down the Nikkei 225, the author argues, which will rise when 10-year T-bill yields go north.  
  
 
== Trading Vehicles ==
 
== Trading Vehicles ==

Revision as of 20:10, 29 May 2008

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The Nikkei 225 index, named for the Japanese business newspaper that calculates it, is the most widely quoted benchmark of Japanese large-cap stock performance. It trades most commonly on global markets as ETFs and futures contracts.

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Brief History

The Nikkei 225 Stock Average is a price-weighted average of the top 225 Japanese companies in the First Section of the Tokyo Stock Exchange and was first published by the Nihon Keizai Shimbun ("Nikkei") newspaper in 1949.[1] Its closest competitor is the S&P/TOPIX 150, an index represents 150 highly liquid, large-cap Japanese stocks and 70% of total equities market value.[2]

Movements in the Nikkei 225 are nowadays more closely correlated with the yield for 10-year U.S. Treasury bills than with any other non-Japanese market factor, according to one analysis.[3] Downward pressure on T-bill yields such as lower Federal Reserve interest rates is currently also holding down the Nikkei 225, the author argues, which will rise when 10-year T-bill yields go north.

Trading Vehicles

Both Nomura Asset Management[4] and Daiwa Asset Management[5] offer Exchange Traded Funds(ETFs) tracking the Nikkei 225, both listed on the Osaka Securities Exchange. Barclay's Global Capital lists an iShares Nikkei 225 ETF on Germany's Deutsche Borse[6].

Chicago's CME Group also lists dollar-denominated futures and options on futures contracts on the Nikkei 225 that are eligible for the Mutual Offset System (MOS) and so can clear either through the [7] or the Singapore ExchangeREF.


References

  1. Nikkei 225 Stock Average. Bloomberg.
  2. S&P/TOPIX 150 Overview. Standard & Poors.
  3. Nikkei 225 Will Turn When U.S Treasuries Do. SeekingAlpha.com.
  4. Nikkei 225 Exchange Traded Fund (ETF). Google Finance.
  5. Daiwa ETF - Nikkei 225. Osaka Securities Exchange.
  6. ISHARES NIKKEI 225. Deutsche Borse.
  7. Nikkei 225 (DOLLAR) Futures Product Overview. CME Group.