Nikkei 225 Index (N225)

The Economic Times  Aug 20  Comment 
A weaker yen nudged the Nikkei share average up 0.03 per cent to 15,454.45, the eighth straight day of gains. The dollar rose to a session high of 103.27 yen - its strongest level since April.
Japan Today  Aug 20  Comment 
Tokyo stocks closed flat Wednesday as profit-taking erased most of the market's early gains, which were driven by a weakening yen and after a positive session on Wall Street. The Nikkei 225 index added 0.03%, or 4.66 points, to close at...
Reuters  Aug 19  Comment 
Japan plans to seek funding to buy six F-35 stealth fighter jets in next year's budget to strengthen defense of remote southwestern islands against China, which has grown increasingly...
Market Intelligence Center  Aug 19  Comment 
U.S. stocks are moving up this morning.  The S&P 500 is up 0.20% and the Dow is up 0.29%. The Consumer Price Index rose 0.1% in July, down from 0.3%  the previous month. Asian markets were up Tuesday as Japanese stocks continued to rise.  The...
The Economic Times  Aug 19  Comment 
The Nikkei rose for a seventh straight day, rising 0.8 per cent to 15,449.79 points. It hit an intraday high of 15,476.05, its best level since Aug. 5.
The Economic Times  Aug 19  Comment 
MSCI's broadest index of Asia-Pacific shares outside Japan added about 0.6 per cent. Japan's Nikkei stock average ended up 0.8 per cent.
MarketWatch  Aug 19  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average) up 0.9% ; Hong Kong (Hang Seng Index) up 0.3% ; Shanghai (Shanghai Composite Index) up 0.1% ; Sydney (S&P/ASX 200) up 0.6% ; Seoul (Kospi) up 0.7% Taipei...
The Economic Times  Aug 18  Comment 
The Nikkei was flat at 15,319.23 in a volatile mid-morning session after booking a 3.7 per cent gain last week, the biggest weekly rise since mid-April.
Japan Today  Aug 18  Comment 
Tokyo stocks closed flat on Monday amid few trading incentives, after the Japanese market added more than three percent last week. The Nikkei 225 index inched up 0.03%, or 4.26 points, to 15,322.60. The Topix index of all first-section issues...  Aug 18  Comment 
TOKYO (dpa-AFX) - After a slightly flat start and a subsequent smart upmove, the Japanese market is paring gains with stocks swinging between gains and losses amid a lack of direction. A slightly stronger yen is also contributing to the...


The Nikkei 225 Stock Index maps companies on the Tokyo Stock Exchange (TSE). It is the oldest and the most well known Asian index in the world. The Nihon Keizai Shimbun (Nikkei) newspaper has been commisioned to officially calculate this index since 1971. The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949. Currently. the Nikkei is used as the major indicator for the Japanese economy, similar to the Dow Jones Industrial Average (.DJIA). In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985.[1]. However, unlike the Dow Jones, as the Nikkei 225 is designed to reflect the overall market, there is no specific weighting of industries. Stock splits, removals and additions of constituents impact upon the effective weighting of individual stocks and the divisor.[2]

Weighting and Components

The Nikkei is a price weighted average index (the unit is Yen), similar to the Dow Jones Index, based on a par value of ¥50 per share. That means, a ¥50 price change in any stock affects the average the same way, regardless of whether the stock is priced at ¥5 or ¥500 per share. The Nikkei 225 index's components are reviewed every year in September. Any changes, if required, are published in October and the index is adapted accordingly.

To calculate an equal weighted index, the market capitalization for each stock used in the calculation of the index is redefined so that each index constituent has an equal weight in the index at each re-balancing date. In addition to being the product of the stock price, the stock’s shares outstanding, and the stock’s float factor – and the exchange rate when applicable; a new adjustment factor is also introduced in the market capitalization calculation to establish equal weighting.

  • Stock Market Value= Price of shares * Number of shares outstanding * Free float factor * Exchange Rate(if applicable) * Adjustment Factor[3]

The Adjustment factor of a stock is assigned to the stock at each re-balancing date, which makes the stock value for each stock equal. For index component, the value would be:

  • Adjustment Factor= Index specific constant "Z"/(Number of shares of the stock*Adjusted stock market value before re-balancing)

The main criticism with this index is that a $5 priced share would have the same weight as the $200 priced share, which gives the smaller shares more weight than their due. Moreover, the stocks keep changing and so does the equality, so the stock has to be rebalanced from time to time[4] as compared to a cap weighted index.


  2. Wikipedia
  3. Calculating Equal weighted index
  4. Definition of a Equal Weighted Index
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki