Wikipedia

Nikkei 225

The Nikkei 225, or the Nikkei Stock Average (Japanese: 日経平均株価, Hepburn: Nikkei heikin kabuka), more commonly called the Nikkei or the Nikkei index[1][2] (/ˈnɪkeɪ, ˈniː-, nɪˈkeɪ/), is a stock market index for the Tokyo Stock Exchange (TSE). It is a price-weighted index, operating in the Japanese Yen (JP¥), and its components are reviewed twice a year. The Nikkei 225 measures the performance of 225 highly capitalised and liquid publicly owned companies in Japan from a wide array of industry sectors. Since 2017, the index is calculated every five seconds.[3] It was originally launched by the Tokyo Stock Exchange in 1950, and was taken over by the Nihon Keizai Shimbun (The Nikkei) newspaper in 1970, when the Tokyo Exchange switched to the Tokyo Stock Price Index (TOPIX), which is weighed by market capitalisation rather than stock prices.[4]

Nikkei 225
Foundation7 September 1950; 75 years ago (1950-09-07)
OperatorNihon Keizai Shimbun
(The Nikkei)
(Nikkei, Inc.)
ExchangesTokyo Stock Exchange (TSE)
Constituents225
Weighting methodPrice-weighted index
Related indicesTokyo Stock Price Index (TOPIX)
Websiteindexes.Nikkei.co.jp
Nikkei 225 Index

History

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The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949 when the average price of its component stocks was ¥176.21 (equivalent to ¥1,554 in 2024) using a divisor of 225.[5][6] Since July 2017, the index is updated every 5 seconds during trading sessions.[5]

The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange (CME) in 1990, is now an internationally recognized futures index.[7]

The Nikkei average has deviated sharply from the textbook model of stock averages, which grow at a steady exponential rate. During the Japanese asset price bubble, the average hit its bubble-era record high on December 29th, 1989, when it reached an intraday high of 38,957.44, before closing at 38,915.87, having grown sixfold during the decade. Subsequently, it lost nearly all these gains, reaching a post-bubble intraday low of 6,994.90 on October 28th, 2008 — 82% below its peak nearly 19 years earlier.[8] The 1989 record high held for 34 years, until it was surpassed in 2024 (see below).

On March 15th, 2011, the second working day after the massive earthquake in the northeast part of Japan, the index dropped over 10% to finish at 8,605.15, a loss of 1,015 points. The index continued to drop throughout 2011, bottoming out at 8,160.01 on November 25th, putting it at its lowest close since March 31st, 2009. The Nikkei fell over 17% in 2011, finishing the year at 8,455.35, its lowest year-end closing value in nearly thirty years, when the index finished at 8,016.70 in 1982.[9]

The Nikkei started 2013 near 10,600, hitting a peak of 15,942 in May. However, shortly afterward, it plunged by almost 10% before rebounding, making it the most volatile stock market index among the developed markets. By 2015, it had reached over 20,000 mark, marking a gain of over 10,000 in two years, making it one of the fastest growing stock market indices in the world. However, by 2018, the index growth was more moderate at around the 22,000 mark.[citation needed]

There was concern that the rise since 2013 was artificial and due to purchases by the Bank of Japan ("BOJ").[10][11] From a start in 2013, by end 2017, the BOJ owned circa 75%[12] of all Japanese Exchange Traded Funds ("ETFs"), and were a top 10 shareholder of 90% of the Nikkei 225 constituents.[13][14]

On February 15th, 2021, the Nikkei average breached the 30,000 benchmark, its highest level in 30 years, due to the levels of monetary stimulus and asset purchase programs executed by the Bank of Japan to mitigate the financial effects of the COVID-19 pandemic.[15]

On February 22nd, 2024, the Nikkei reached an intraday high of 39,156.97 and closed at 39,098.68, finally surpassing its 1989 record high, an important milestone since the Japanese asset price bubble.[16] On March 4th, 2024, the index surpassed 40,000 (intraday and closing) for the first time in history.[17]

On August 5th, 2024, amid a global stock market decline, the Nikkei dropped by more than 4,200 points, surpassing 1987's Black Monday as its biggest single-day drop in history.[18] The following day, it bounced back by more than 3,200 points, the largest single-day gain in history.[19]

On February 27, 2026, the Nikkei closed at a record all-time high of 58,850 points.[20]

Weighting

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The index is a price-weighted index. The index is calculated as follows:[5]

, then

  • Price is the stock price of a component.
  • AdjFactor is the price adjustment factor.[clarification needed]
  • AdjPrice is the adjusted price of the stock after multiplying by the adjustment factor.
  • Divisor is the index divisor. The divisor is adjusted each time there is a change in the index's constituents, or a stock split occurs (unless when compensated for the price adjustment factor).[clarification needed]

As of 1 April 2026, the divisor is 29.83110217. That is, every ¥100 change in the adjusted price of a constituent stock results in a 3.3522 unit movement in the index.

As of 7 April 2026, the company with the largest influence on the index is Advantest (TYO: 6857), at about 10% weight.

Contract specifications

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The Nikkei 225 is traded as a future on the Osaka exchange (OSE). The contract specifications for the Nikkei 225 (OSE ticker symbol JNK) are listed below:

Contract Specifications[21]
Nikkei 225 (JNK)
Contract Size: Nikkei 225 Index X Y1,000
Exchange: OSE
Sector: Index
Tick Size: 10
Tick Value: 10000 JPY
Big Point Value (BPV): 1000
Denomination: JPY
Decimal Place: 0

Annual returns

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The following table shows the annual development of the Nikkei 225, which was officially calculated back to May 16, 1949, with unofficial calculations extending back to 1914.[22][23][24]

Year Closing level Change in Index
in Points		 Change in Index
in %
191421.12
191532.1010.9851.99
191641.619.5129.63
191741.40−0.21−0.50
191842.210.811.96
191953.6311.4227.06
192027.44−26.19−48.83
192128.881.445.25
192223.97−4.91−17.00
192322.83−1.14−4.76
192424.451.627.10
192527.963.5114.36
192627.25−0.71−2.54
192725.82−1.43−5.25
192825.65−0.17−0.66
192921.32−4.33−16.88
193016.82−4.50−21.11
193116.28−0.54−3.21
193230.3314.0586.30
193334.123.7912.50
193432.30−1.82−5.33
193533.761.464.52
193635.942.186.46
193737.331.393.87
193833.66−3.67−9.83
193944.9611.3033.57
194037.42−7.54−16.77
194142.445.0213.42
194242.710.270.64
194342.11−0.60−1.40
194441.82−0.29−0.69
194540.53−1.29−3.08
194628.72−11.81−29.14
194739.3110.5936.87
194872.8433.5385.30
1949109.9137.0750.89
1950101.91−8.00−7.28
1951166.0664.1562.95
1952362.64196.58118.38
1953377.9515.314.22
1954356.09−21.86−5.78
1955425.6969.6019.55
1956549.14123.4529.00
1957474.55−74.59−13.58
1958666.54191.9940.46
1959874.88208.3431.26
19601,356.71481.8355.07
19611,432.6075.895.59
19621,420.43−12.17−0.85
19631,225.10−195.33−13.75
19641,216.55−8.55−0.70
19651,417.83201.2816.55
19661,452.1034.272.42
19671,283.47−168.63−11.61
19681,714.89431.4233.61
19692,358.96644.0737.56
19701,987.14−371.82−15.76
19712,713.74726.6036.57
19725,207.942,494.2091.91
19734,306.80−901.14−17.30
19743,817.22−489.58−11.37
19754,358.60541.3814.18
19764,990.85632.2514.51
19774,865.60−125.25−2.51
19786,001.851,136.2523.35
19796,569.47567.629.46
19807,116.38546.918.33
19817,681.84565.467.95
19828,016.67334.834.36
19839,893.821,877.1523.42
198411,542.601,648.7816.66
198513,113.321,570.7213.61
198618,701.305,587.9842.61
198721,564.002,862.7015.31
198830,159.008,595.0039.86
198938,915.878,756.8729.04
199023,848.71−15,067.16−38.72
199122,983.77−864.94−3.63
199216,924.95−6,058.82−26.36
199317,417.24492.292.91
199419,723.062,305.8213.24
199519,868.15145.090.74
199619,361.35−506.80−2.55
199715,258.74−4,102.61−21.19
199813,842.17−1.416,57−9.28
199918,934.345,092.1736.79
200013,785.69−5,148.65−27.19
200110,542.62−3,243.07−23.52
20028,578.95−1,963.67−18.63
200310,676.642,097.6924.45
200411,488.76812.127.61
200516,111.434,622.6740.24
200617,225.831,114.406.92
200715,307.78−1,918.05−11.13
20088,859.56−6,448.22−42.12
200910,546.441,686.8819.04
201010,228.92−317.52−3.01
20118,455.35−1,773.57−17.24
201210,395.181,939.8322.94
201316,291.315,896.1356.72
201417,450.771,159.467.12
201519,033.711,582.949.07
201619,114.4080.690.42
201722,764.943,650.5419.10
2018 20,014.77 −2,750.17−12.08
2019 23,656.62 3,641.85 18.20
2020 27,444.17 3,787.55 16.01
2021 28,791.71 1,347.54 4.68
2022 26,094.50 −2,697.21−9.37
2023 33,464.17 7,369.67 28.24
2024 39,894.54 6,430.37 19.21
2025 50,339.48 10,444.94 26.18

Components

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Components grouped by GICS sector
  1. Energy (0.30%)
  2. Materials (7.00%)
  3. Industrials (18.0%)
  4. Consumer discretionary (21.0%)
  5. Consumer staples (5.00%)
  6. Healthcare (10.0%)
  7. Financials (3.00%)
  8. Information technology (24.0%)
  9. Communication services (9.50%)
  10. Utilities (0.20%)
  11. Real estate (2.00%)

It is not recorded how components were originally selected, or why there are 225 components. Today, components are selected by "considering the weights of the industrial sectors".[clarification needed] Constituents must be highly traded ("liquid"). Constituents are changed either at periodic review one per year, or by "extraordinary replacement", for example if a company is delisted.[5]

As of April 2026, the Nikkei 225 consists of the following companies (Japanese securities identification code in parentheses):[25] Bold indicates the top ten by market capitalisation.

Air transport

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Automotive

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Banking

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Chemicals

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Communications

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Construction

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Electric machinery

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Electric power

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Fishery

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Foods

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Gas

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Glass & ceramics

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Insurance

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Land transport

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Machinery

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Marine transport

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Mining

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Nonferrous metals

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Other financial services

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Other manufacturing

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Petroleum

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Pharmaceuticals

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Precision instruments

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Pulp & paper

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Railway/bus

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Real estate

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Retail

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Rubber

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Securities

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Services

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Shipbuilding

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Steel

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Textiles & apparel

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Trading companies

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Statistics

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As of 23 April 2026 (records going back to 16 May 1949):[26]

  • Lowest value: 85.25 on 6 July 1950
  • Highest value (closing): 63,272.11 on 13 May 2026
  • Highest value (intraday): 63,799.32 on 14 May 2026
  • Largest gain (absolute): +3,320.72 to 62,833.84 on 7 May 2026
  • Largest gain (relative): +14.15% to 9,447.57 on 14 October 2008
  • Longest winning streak: 16 consecutive trading days from 2 to 24 October 2017
  • Largest fall (absolute): −4,451.28 to 31,458.42 on 5 August 2024
  • Largest fall (relative): −14.90% to 21,910.08 on 20 October 1987
  • Longest losing streak: 15 consecutive trading days from 28 April to 18 May 1954

Closing milestones

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  • 200 (200.60) on 19 April 1952
  • 300 (302.73) on 17 October 1952
  • 500 (500.70) on 6 June 1956
  • 750 (750.63) on 23 March 1959
  • 1,000 (1,002.46) on 20 February 1960
  • 1,500 (1,501.50) on 30 January 1961
  • 2,000 (2,002.46) on 31 May 1969
  • 2,500 (2,504.84) on 26 March 1970
  • 3,000 (3,013.46) on 26 February 1972
  • 4,000 (4,007.66) on 16 August 1972
  • 5,000 (5,025.54) on 22 December 1972
  • 6,000 (6,002.74) on 1 December 1978
  • 7,000 (7,000.04) on 12 September 1980
  • 8,000 (8,019.14) on 17 August 1981
  • 9,000 (9,015.76) on 7 July 1983
  • 10,000 (10,053.81) on 9 January 1984
  • 15,000 (15,013.19) on 22 March 1986
  • 20,000 (20,048.35) on 30 January 1987
  • 25,000 (25,049.40) on 3 June 1987
  • 30,000 (30,050.82) on 7 December 1988
  • 35,000 (35,084.15) on 16 August 1989

The index closed at 38,915.87 on 29 December 1989. No further record close was set by the index for another 34 years until 22 February 2024, when the index closed at 39,098.68.

  • 40,000 (40,109.23) on 4 March 2024
  • 45,000 (45,303.43) on 18 September 2025
  • 50,000 (50,512.32) on 27 October 2025
  • 55,000 (56,363.94) on 9 February 2026
  • 60,000 (60,537.36) on 27 April 2026

See also

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References

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  1. ↑ "the Nikkei (index) definition, meaning – what is the Nikkei (index) in the British English Dictionary & Thesaurus". cambridge.org. Cambridge Dictionaries Online.
  2. ↑ "Nikkei 225". Yahoo.com. Yahoo. Archived from the original on 12 December 2011.
  3. ↑ "指数情報 － 日経平均プロフィル". indexes.nikkei.co.jp. Retrieved 23 April 2024.
  4. ↑ "TOPIX". Japan Exchange Group. Retrieved 23 April 2024.
  5. 1 2 3 4 "FAQ (Nikkei Stock Average)" (PDF). Nikkei Inc. 4 April 2022. Retrieved 24 February 2024.
  6. ↑ "The World's Wildest Market and 2 Television Milestones". The Motley Fool. 7 September 2013. Retrieved 24 February 2024.
  7. ↑ Nikkei Net interactive Archived 22 December 2008 at the Wayback Machine
  8. ↑ "Nikkei Futures | About". 7 January 2014.
  9. ↑ "Japan's Nikkei at lowest year-end level since 1982". BBC News. 30 December 2011. Retrieved 15 August 2025.
  10. ↑ "Japan Central Bank's ETF Shopping Spree Is Becoming a Worry". Bloomberg. 18 July 2017.
  11. ↑ "Japan's Central Bank Is Distorting the Market, Bourse Chief Says". Bloomberg. 19 July 2017.
  12. ↑ "Bank of Japan's $150 Billion ETF Binge Looks Likely to Slow Next Year". Bloomberg. 10 December 2017.
  13. ↑ "BoJ Now A Top 10 Shareholder In 90% Of Nikkei 225". Barrons. 24 April 2017.
  14. ↑ "What Happens When The Bank Of Japan Owns Everything?". Forbes. 27 April 2016.
  15. ↑ "Nikkei index hits 30,000 for first time in three decades". The Nikkei. 15 February 2021. Archived from the original on 15 February 2021.
  16. ↑ Hasegawa, Kyoko (22 February 2024). "Japan's Nikkei breaks bubble-era record". Yahoo News. AFP. Retrieved 24 February 2024.
  17. ↑ "Japan's Nikkei Stock Average tops 40,000 for first time". Nikkei Asia. Retrieved 4 March 2024.
  18. ↑ 日本放送協会 (5 August 2024). "【速報中】株価 下落幅過去最大 1987年ブラックマンデー翌日超 | NHK". NHKニュース. Archived from the original on 5 August 2024. Retrieved 5 August 2024.
  19. ↑ 日本放送協会 (6 August 2024). "日経平均株価 終値3217円04銭値上がり 過去最大の上昇幅 | NHK". NHKニュース. Archived from the original on 6 August 2024. Retrieved 6 August 2024.
  20. ↑ "Nikkei 225 closes at record high for 3rd straight day". NHK World-Japan. 27 February 2026. Archived from the original on 4 March 2026. Retrieved 4 March 2026.
  21. ↑ "Historical Nikkei 225 Intraday Futures Data (JNK)". PortaraCQG. Retrieved 28 October 2022.
  22. ↑ "Finfacts: Irish business, finance news on economics". www.finfacts.com. Archived from the original on 28 October 2019. Retrieved 19 January 2020.
  23. ↑ "Historical Data (Nikkei 225) - Nikkei Indexes". indexes.nikkei.co.jp. Retrieved 19 January 2020.
  24. ↑ "NIKKEI 225 Index (Japan) Yearly Stock Returns". www.1stock1.com. Archived from the original on 17 July 2019. Retrieved 19 January 2020.
  25. ↑ "Components:Nikkei Stock Average (Nikkei 225)". Nikkei Indexes. 13 October 2023.
  26. ↑ "Historical Data (Nikkei 225) - Nikkei Indexes". indexes.nikkei.co.jp. Retrieved 14 April 2026.
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