The Nikkei-225 Stock Average is one of the major Japanese stock indices. It is a price-weighted average of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange. The Nikkei 225 began to be calculated on September 7, 1950. Its first name was TSE Adjusted Average Price. Since 1970, the index has been calculated by the Japanese newspaper Nihon Keizai Shimbun.
The components of the Nikkei 225 are reviewed once a year. In case stocks of a company are no longer liquid, they may be replaced by other companies. Previously, the index had been subject to changes only in case of merger or liquidation of firms. The Nikkei’s all-time high of 38,915.87 points was recorded in late 1989, while its all-time low of 7,607.88 was reached on April 28, 2003. Currently, the index is gradually rising.
Futures and options on the Nikkei 225 provide investors from all over the world with a great opportunity to take advantage of the Japanese stock market fluctuations. In order to trade the Nikkei 225 in a right way, traders are recommended to do it precisely at the opening of the Japanese session. It is also interesting to note that the US economy has a strong impact on the Nikkei 225, but these effects are seen only within the first hour after trades on Tokyo Stock Exchange are opened.