Nikkei 225

From MarketsWiki
Revision as of 20:11, 29 May 2008 by RobLuke (Talk | contribs)

Jump to: navigation, search
float
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.


Template:Infobox Midpage Need Sponsor

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.