What is Nikkei 225?
The Nikkei 225, often referred to simply as the Nikkei, is a prominent stock market index that encompasses 225 of the largest and most actively traded companies listed on the Tokyo Stock Exchange. This comprehensive representation of Japan's equity market makes the Nikkei 225 a valuable tool for providing an overall snapshot of the Japanese stock market.
This index is unique in that it employs a price-weighted methodology, meaning that stocks with higher prices have a greater influence on the index's movements. It encompasses a diverse array of companies spanning various sectors, with a strong emphasis on Japan's economic giants.
As a crucial gauge of the nation's economic well-being, the Nikkei 225 plays a vital role in offering insights about the performance and trends in Japanese stocks. Its rich history and reputation establish it as a fundamental reference point for anyone interested in understanding the intricacies of Japan's financial landscape. However, there have been some changes recently.
Nikkei 225 Replaces 3 Constituent Stocks After Semi-Annual Review
Figure 1. Nikkei Inc. announced the above partial change of component issues of the Nikkei Stock Average (Nikkei 225)
According to Nikkei, it will be replacing three of its constituent stocks in the Nikkei Stock Average, or Nikkei 225, as part of its semi-annual review. This would take effect from 2nd October 2023. The three stocks being replaced are from Nippon Sheet Glass, Mitsui E&S Co., and Matsui Securities.
In place of these three constituent stocks, three other companies will be added to the Nikkei 225. The companies are Mercari Inc, Lasertec Corporation, and Nitori Holdings Co.
These additions and changes to the Nikkei 225 reflect the evolving landscape of the Japanese stock market and its inclusion of companies from various sectors, representing the diversity of the Japanese economy.
To gain a better understanding of these new companies in Nikkei 225, let's delve into what each of them does.
Mercari Inc
Mercari is a Japanese e-commerce company that operates an online marketplace. It provides a platform where individuals can buy and sell a wide variety of items, including electronics, clothing, collectibles, and more. Mercari has gained popularity for its user-friendly interface and mobile app, making it convenient for people to engage in peer-to-peer buying and selling.
Lasertec Corporation
Lasertec is a technology company specializing in equipment for semiconductor manufacturing and inspection. They produce advanced inspection and measurement tools that play a critical role in ensuring the quality and reliability of semiconductor chips. These tools are essential in the semiconductor industry, which is a fundamental component of modern electronics.
Nitori Holdings Co
Nitori is a major Japanese retail company primarily focused on furniture and interior goods. It operates a chain of stores that offer a wide range of home furnishings, including furniture, bedding, kitchenware, and home accessories. Nitori has become a well-known brand in Japan and is known for its affordable and stylish furniture options.
Trading Nikkei 225 Futures
Traders can invest in Nikkei 225 index futures and options through 3 main exchanges. Orient Futures Singapore offers Nikkei 225 futures from Chicago Mercantile Exchange (CME), Osaka Exchange Incorporated (JPX), and the Singapore Exchange (SGX).
CME Nikkei 225 Futures
The CME Group offers several types of Nikkei 225 Futures, as follows:
- Nikkei 225 (USD) Futures
- Nikkei 225 (Yen) Futures & Nikkei 225 (Yen) BTIC Futures
Click to find out about the CME Nikkei 225 futures Contract Specifications and the CME trading hours.
JPX Nikkei Futures
The Osaka Exchange Incorporated (JPX) offers several types of Nikkei Futures and Options, as follows:
- JPX Nikkei Index 400 Futures
- Nikkei 225 Futures
- Nikkei 225 Options
- Nikkei 225 Mini Futures
Click to find out about JPX trading hours here.
SGX Nikkei 225 Index Futures
The Singapore Exchange (SGX) offers several types of SGX Nikkei Futures, as follows:
- Nikkei 225 Index Futures
- Nikkei 225 Index (Trade at Index Close) Futures
- Nikkei Climate PAB Futures
- Nikkei ESG-REIT Index Futures
- Nikkei Stock Average Dividend Futures
Click to find out about the Nikkei 225 futures Contract Specifications SGX and the SGX trading hours.
Japan Nikkei News and Nikkei Share Price
According to a report by Market Pulse, the Japanese Nikkei 225 has outperformed the rest of the world in the challenging month of August, during which most global benchmark stock indices recorded their worst losses in three months.
The report continues to state that since the Nikkei 225's decline on August 18th, it has seen a gain of 6.1% as of September 6, 2023.
The price actions of the Japan 225 (JPY) Index, serving as a proxy for Nikkei 225 futures, have followed the expected rebound just above the key medium-term support level of 31,130, as highlighted in the previous report. It reached the resistance level of 32,810 on August 30, 2023.
Subsequently, it continued to rally and staged a bullish breakout from a two-month descending range. This breakout occurred on September 6th, marking a significant development within the ongoing major uptrend that has been in place since the low of January 3, 2023, at 25,585.
Click here to track the price of the Nikkei 225 Index live.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
