The Bullish Bears break down a list of the Nikkei 225 stocks and companies, ETFs, and futures. Japan’s Nikkei index measures the performance of 225 large stocks of companies in a wide range of industries. It’s part of the TSE or Tokyo Stock Exchange. If you are looking into investing in foreign markets, this is a good place to start. The Nikkei 225 was born on September 7th, 1950, and was retroactively calculated back to May 1949. It would be best compared to the DOW if you compare it to a US exchange. Also, check out our full stock indexes list.
What does the Nikkei stand for? It is named after the “Nihon Keizai Shimbun” or Japan’s Economic Newspaper, commonly known as Nikkei, which sponsors the index calculation. Also interesting is how old it is. The Nikkei is the oldest stock index in all of Asia. (Yes, even China)
You can not invest directly into the exchange, but there are ETFs you can invest in that are also available on the US stock market. The most prominent one is the iShares MSCI Japan ETF.
We are not affiliated with nor endorse any of these companies, and nothing on this site constitutes a recommendation to buy or sell.
Chart by TradingView
Table of Contents
List of Nikkei 225 Stocks and Companies
| Symbol | Name | Market Cap | Sector | Industry |
|---|---|---|---|---|
| 6758 | Sony Group Corporation | $126.64 B | Technology | Consumer Electronics |
| 6861 | Keyence Corp | $113.20 B | Technology | Scientific & Technical Instruments |
| 9432 | Nippon Telegraph & Telephone Corp | $103.75 B | Communication Services | Telecom Services |
| 8306 | Mitsubishi UFJ Financial Group, Inc. | $85.03 B | Financials | Banks |
| 8035 | Tokyo Electron Ltd | $79.62 B | Technology | Semiconductor Equipment & Materials |
| 9433 | KDDI Corp | $73.12 B | Communication Services | Telecom Services |
| 6098 | Recruit Holdings Co Ltd | $68.11 B | Industrials | Staffing & Employment Services |
| 4661 | Oriental Land Co. Ltd | $64.66 B | Consumer Discretionary | Leisure |
| 4063 | Shin-Etsu Chemical Co Ltd | $63.43 B | Basic Materials | Chemicals |
| 7974 | Nintendo Co Ltd | $62.20 B | Communication Services | Electronic Gaming & Multimedia |
| 8058 | Mitsubishi Corp | $57.23 B | Industrials | Conglomerates |
| 6367 | Daikin Industries,Ltd. | $55.58 B | Industrials | Building Products & Equipment |
| 4519 | Chugai Pharmaceutical Co. Ltd | $55.31 B | Healthcare | Drug Manufacturers—General |
| 9984 | SoftBank Group Corp. | $54.93 B | Communication Services | Telecom Services |
| 9983 | Fast Retailing Co. Ltd | $52.29 B | Consumer Discretionary | Apparel Retail |
| 8001 | ITOCHU Corp | $52.19 B | Industrials | Conglomerates |
| 6902 | DENSO Corp | $51.58 B | Consumer Discretionary | Auto Parts |
| 7203 | Toyota Motor Corporation | $51.55 B | Consumer Discretionary | Auto Manufacturers |
| 7267 | Honda Motor Co., Ltd. | $49.11 B | Consumer Discretionary | Auto Manufacturers |
| 6501 | Hitachi Ltd | $48.92 B | Industrials | Conglomerates |
| 6594 | Nidec Corp | $46.33 B | Industrials | Specialty Industrial Machinery |
| 4502 | Takeda Pharmaceutical Company Limited | $45.89 B | Healthcare | Drug Manufacturers—Specialty & Generic |
| 8031 | Mitsui & Co. Ltd | $45.09 B | Energy | Oil & Gas E&P |
| 8316 | Sumitomo Mitsui Financial Group, Inc. | $44.06 B | Financials | Banks |
| 6981 | Murata Manufacturing Co. Ltd | $43.41 B | Technology | Electronic Components |
| 7741 | HOYA Corp | $42.88 B | Healthcare | Medical Instruments & Supplies |
| 3382 | Seven & i Holdings Co. Ltd | $42.53 B | Consumer Staples | Grocery Stores |
| 6EQ | EQT AB | $39.71 B | Financials | Asset Management |
| 4568 | Daiichi Sankyo Company Ltd | $37.79 B | Healthcare | Drug Manufacturers—General |
| 6273 | SMC Corp | $37.08 B | Industrials | Specialty Industrial Machinery |
| 8766 | Tokio Marine Holdings, Inc. | $36.99 B | Financials | Insurance—Property & Casualty |
| 4689 | Z Holdings Corp | $34.24 B | Consumer Discretionary | Internet Retail |
| 6954 | FANUC Corp | $33.68 B | Industrials | Specialty Industrial Machinery |
| 8411 | Mizuho Financial Group, Inc. | $33.47 B | Financials | Banks |
| 7182 | JAPAN POST BANK Co.,Ltd. | $31.93 B | Financials | Banks |
| 2914 | Japan Tobacco, Inc. | $31.59 B | Consumer Staples | Tobacco |
| 6178 | Japan Post Holdings Co. Ltd | $31.41 B | Financials | Banks |
| 6702 | Fujitsu Ltd | $30.28 B | Technology | Information Technology Services |
| 4503 | Astellas Pharma, Inc. | $29.22 B | Healthcare | Drug Manufacturers—General |
| 9613 | NTT Data Corp | $27.26 B | Technology | Information Technology Services |
| 5108 | Bridgestone Corp | $26.88 B | Consumer Discretionary | Auto Parts |
| 7751 | Canon Inc. | $26.38 B | Technology | Computer Hardware |
| 9022 | Central Japan Railway Co | $26.00 B | Industrials | Railroads |
| 6503 | Mitsubishi Electric Corporation | $25.61 B | Industrials | Electrical Equipment & Parts |
| 4901 | FUJIFILM Holdings Corp | $24.12 B | Industrials | Business Equipment & Supplies |
| 8591 | ORIX Corporation | $23.97 B | Financials | Credit Services |
| 2413 | M3, Inc. | $23.89 B | Healthcare | Health Information Services |
| 6326 | Kubota Corp | $23.46 B | Industrials | Farm & Heavy Construction Machinery |
| 4543 | Terumo Corp | $23.16 B | Healthcare | Medical Instruments & Supplies |
| 7733 | Olympus Corp | $23.00 B | Healthcare | Medical Instruments & Supplies |
| 9020 | East Japan Railway Company | $22.78 B | Industrials | Railroads |
| 6752 | Panasonic Corp | $22.73 B | Technology | Consumer Electronics |
| 6301 | Komatsu Ltd | $22.56 B | Industrials | Farm & Heavy Construction Machinery |
| 8053 | Sumitomo Corp | $22.42 B | Industrials | Conglomerates |
| 8113 | Unicharm Corp | $22.08 B | Consumer Staples | Household & Personal Products |
| 6201 | Toyota Industries Corp | $21.99 B | Consumer Discretionary | Auto Manufacturers |
| 8750 | Dai-ichi Life Holdings, Inc. | $21.76 B | Financials | Insurance—Life |
| 7309 | Shimano, Inc. | $21.51 B | Consumer Discretionary | Leisure |
| 8801 | Mitsui Fudosan Co. Ltd | $21.46 B | Real Estate | Real Estate—Diversified |
| 3659 | NEXON Co. Ltd | $21.36 B | Communication Services | Electronic Gaming & Multimedia |
| 8002 | Marubeni Corp | $20.78 B | Industrials | Conglomerates |
| 6971 | Kyocera Corp | $20.62 B | Technology | Consumer Electronics |
| 2768 | Sojitz Corp | $20.55 B | Industrials | Conglomerates |
| 8802 | Mitsubishi Estate Co. Ltd | $20.39 B | Real Estate | Real Estate—Diversified |
| 4612 | Nippon Paint Holdings Co. Ltd | $20.38 B | Basic Materials | Specialty Chemicals |
| 4307 | Nomura Research Institute Ltd | $20.26 B | Technology | Information Technology Services |
| 4452 | Kao Corp | $19.85 B | Consumer Staples | Household & Personal Products |
| 6723 | Renesas Electronics Corp | $19.73 B | Technology | Semiconductors |
| 4911 | Shiseido Co Ltd | $19.69 B | Consumer Staples | Household & Personal Products |
| 4578 | Otsuka Holdings Co. Ltd | $19.03 B | Healthcare | Drug Manufacturers—General |
| 6502 | Toshiba Corp | $18.93 B | Industrials | Specialty Industrial Machinery |
| 8725 | MS&AD Insurance Group Holdings, Inc. | $18.75 B | Financials | Insurance—Property & Casualty |
| 8267 | Aeon Co. Ltd | $18.32 B | Consumer Discretionary | Department Stores |
| 4507 | Shionogi & Co. Ltd | $18.27 B | Healthcare | Drug Manufacturers—Specialty & Generic |
| 2502 | Asahi Group Holdings Ltd | $18.21 B | Consumer Staples | Beverages—Brewers |
| 5401 | Nippon Steel Corp | $17.32 B | Basic Materials | Steel |
| 1925 | Daiwa House Industry Co Ltd | $16.98 B | Real Estate | Real Estate—Development |
| 7201 | Nissan Motor Co Ltd | $16.89 B | Consumer Discretionary | Auto Manufacturers |
| 7269 | Suzuki Motor Corp | $16.74 B | Consumer Discretionary | Auto Manufacturers |
| 7832 | Bandai Namco Holdings, Inc. | $16.54 B | Consumer Discretionary | Leisure |
| 9101 | Nippon Yusen Kabushiki Kaisha | $16.46 B | Industrials | Marine Shipping |
| 8630 | Sompo Holdings, Inc. | $16.17 B | Financials | Insurance—Property & Casualty |
| 2802 | Ajinomoto Co., Inc. | $15.92 B | Consumer Staples | Packaged Foods |
| 9735 | Secom Co Ltd | $15.85 B | Industrials | Security & Protection Services |
| 6857 | Advantest Corp | $15.46 B | Technology | Semiconductor Equipment & Materials |
| 1605 | Inpex Corp | $15.16 B | Energy | Oil & Gas E&P |
| 6920 | Lasertec Corp | $14.87 B | Technology | Scientific & Technical Instruments |
| 8015 | Toyota Tsusho Corp | $14.74 B | Basic Materials | Steel |
| 6869 | Sysmex Corp | $14.72 B | Healthcare | Diagnostics & Research |
| 9843 | Nitori Holdings Co. Ltd | $14.41 B | Consumer Discretionary | Specialty Retail |
| 5713 | Sumitomo Metal Mining Co. Ltd | $14.08 B | Basic Materials | Other Industrial Metals & Mining |
| 8604 | Nomura Holdings, Inc. | $13.84 B | Financials | Capital Markets |
| 8421 | Shinkin Central Bank | $13.79 B | Financials | Banks |
| 1928 | Sekisui House Ltd | $13.65 B | Consumer Discretionary | Residential Construction |
| 4523 | Eisai Co. Ltd | $13.64 B | Healthcare | Drug Manufacturers—Specialty & Generic |
| 6645 | OMRON Corp | $13.63 B | Technology | Electronic Components |
| 4684 | OBIC Co.,Ltd. | $13.56 B | Technology | Software—Application |
| 8830 | Sumitomo Realty & Development Co. Ltd | $13.43 B | Real Estate | Real Estate Services |
| 2503 | Kirin Holdings Company Ltd | $12.88 B | Consumer Staples | Beverages—Brewers |
| 4528 | Ono Pharmaceutical Co. Ltd | $12.86 B | Healthcare | Drug Manufacturers—General |
| 2801 | Kikkoman Corp | $12.74 B | Consumer Staples | Packaged Foods |
| 8309 | Sumitomo Mitsui Trust Holdings, Inc. | $12.59 B | Financials | Banks |
| 4151 | Kyowa Kirin Co. Ltd | $12.51 B | Healthcare | Drug Manufacturers—General |
| 3407 | Asahi Kasei Corp | $12.43 B | Basic Materials | Chemicals |
| 9143 | SG Holdings Co.,Ltd. | $12.39 B | Industrials | Integrated Freight & Logistics |
| 5020 | ENEOS Holdings, Inc. | $12.34 B | Energy | Oil & Gas Refining & Marketing |
| 7270 | Subaru Corp | $12.24 B | Consumer Discretionary | Auto Manufacturers |
| 4324 | Dentsu Group, Inc. | $11.96 B | Communication Services | Advertising Agencies |
| 2587 | Suntory Beverage & Food Ltd | $11.93 B | Consumer Staples | Beverages—Brewers |
| 4755 | Rakuten, Inc. | $11.83 B | Consumer Discretionary | Internet Retail |
| 9104 | Mitsui O.S.K. Lines Ltd | $11.65 B | Industrials | Marine Shipping |
| 6701 | NEC Corp | $11.59 B | Technology | Information Technology Services |
| 7011 | Mitsubishi Heavy Industries Ltd | $11.29 B | Industrials | Specialty Industrial Machinery |
| 6988 | Nitto Denko Corp | $11.08 B | Basic Materials | Specialty Chemicals |
| 8308 | Resona Holdings, Inc. | $10.76 B | Financials | Banks |
| 3064 | MonotaRO Co. Ltd | $10.62 B | Industrials | Tools & Accessories |
| 7701 | Shimadzu Corp | $10.40 B | Technology | Scientific & Technical Instruments |
| NPX | Taiyo Nippon Sanso Corp | $10.37 B | Basic Materials | Chemicals |
| 9202 | ANA Holdings, Inc. | $10.28 B | Industrials | Airlines |
| 6506 | Yaskawa Electric Corp | $10.25 B | Industrials | Electrical Equipment & Parts |
| 7532 | Pan Pacific International Holdings Corp | $10.22 B | Consumer Staples | Discount Stores |
| SMO | SMOBY | $10.20 B | Consumer Discretionary | Auto Parts |
| 8697 | Japan Exchange Group, Inc. | $9.96 B | Financials | Financial Data & Stock Exchanges |
| 8951 | Nippon Building Fund InCorp | $9.71 B | Real Estate | REIT—Office |
| 4188 | Mitsubishi Chemical Holdings Corp | $9.64 B | Basic Materials | Chemicals |
| 7202 | Isuzu Motors Ltd | $9.64 B | Consumer Discretionary | Auto Manufacturers |
| 7259 | Aisin Seiki Co. Ltd | $9.45 B | Consumer Discretionary | Auto Parts |
| 5802 | Sumitomo Electric Industries, Ltd. | $9.28 B | Consumer Discretionary | Auto Parts |
| 6383 | Daifuku Co. Ltd | $8.93 B | Industrials | Specialty Industrial Machinery |
| 8601 | Daiwa Securities Group, Inc. | $8.86 B | Financials | Capital Markets |
| 4716 | Oracle Corp Japan | $8.86 B | Technology | Software—Application |
| 5201 | AGC Inc. | $8.74 B | Basic Materials | Specialty Chemicals |
| 9766 | Konami Holdings Corporation | $8.70 B | Communication Services | Electronic Gaming & Multimedia |
| 6586 | Makita Corp | $8.70 B | Industrials | Tools & Accessories |
| 9962 | MISUMI Group, Inc. | $8.68 B | Industrials | Tools & Accessories |
| 3402 | Toray Industries, Inc. | $8.65 B | Consumer Discretionary | Textile Manufacturing |
| 4021 | Nissan Chemical Corp | $8.63 B | Basic Materials | Chemicals |
| 5411 | JFE Holdings, Inc. | $8.62 B | Basic Materials | Steel |
| 9201 | Japan Airlines Co. Ltd | $8.61 B | Industrials | Airlines |
| 2267 | Yakult Honsha Co.,Ltd. | $8.59 B | Consumer Staples | Beverages—Non-Alcoholic |
| 6479 | Minebea Mitsumi, Inc. | $8.58 B | Technology | Electronic Components |
| 9503 | The Kansai Electric Power Company, Inc. | $8.50 B | Utilities | Utilities—Renewable |
| 8795 | T&D Holdings, Inc. | $8.40 B | Financials | Insurance—Life |
| 5019 | Idemitsu Kosan Co.,Ltd. | $8.35 B | Energy | Oil & Gas Refining & Marketing |
| 6965 | Hamamatsu Photonics K.K. | $8.26 B | Technology | Electronic Components |
| 4704 | Trend Micro Inc. | $8.25 B | Technology | Software—Infrastructure |
| 9021 | West Japan Railway Company | $8.17 B | Industrials | Railroads |
| 9005 | Tokyu Corp | $8.10 B | Industrials | Railroads |
| 9531 | Tokyo Gas Co.,Ltd. | $8.08 B | Utilities | Utilities—Regulated Gas |
| 3092 | ZOZO, Inc. | $8.04 B | Consumer Discretionary | Internet Retail |
| TJS | LIXIL Group Corp | $7.98 B | Industrials | Building Products & Equipment |
| 9502 | Chubu Electric Power Company, Inc. | $7.97 B | Utilities | Utilities—Diversified |
| 2269 | Meiji Holdings Co. Ltd | $7.93 B | Consumer Staples | Packaged Foods |
| 4005 | Sumitomo Chemical Company Ltd | $7.87 B | Basic Materials | Chemicals |
| 7272 | Yamaha Motor Co Ltd | $7.86 B | Consumer Discretionary | Auto Manufacturers |
| 1878 | Daito Trust Construction Co.,Ltd. | $7.79 B | Real Estate | Real Estate—Diversified |
| 3769 | GMO Payment Gateway, Inc. | $7.69 B | Technology | Software—Infrastructure |
| 7951 | Yamaha Corp | $7.65 B | Consumer Discretionary | Leisure |
| 3283 | Nippon Prologis REIT, Inc. | $7.57 B | Real Estate | REIT—Industrial |
| 8952 | Japan Real Estate Investment Corp | $7.44 B | Real Estate | REIT—Office |
| 2897 | Nissin Foods Holdings Co.,Ltd. | $7.36 B | Consumer Staples | Packaged Foods |
| 7181 | Japan Post Insurance Co. Ltd | $7.17 B | Financials | Insurance—Life |
| 9532 | Osaka Gas Co. Ltd | $7.16 B | Utilities | Utilities—Regulated Gas |
| 6963 | ROHM Co. Ltd | $7.14 B | Technology | Semiconductors |
| 9107 | Kawasaki Kisen Kaisha Ltd | $7.13 B | Industrials | Marine Shipping |
| 9042 | Hankyu Hanshin Holdings, Inc. | $7.11 B | Industrials | Conglomerates |
| 6504 | Fuji Electric Co Ltd | $7.10 B | Industrials | Electrical Equipment & Parts |
| 8593 | Mitsubishi UFJ Lease & Finance Company Ltd | $7.06 B | Financials | Credit Services |
| 4062 | Ibiden Co.,Ltd. | $6.99 B | Technology | Electronic Components |
| 9064 | Yamato Holdings Co., Ltd. | $6.98 B | Industrials | Trucking |
| 4768 | Otsuka Corp | $6.84 B | Technology | Electronics & Computer Distribution |
| 5332 | Toto Ltd. | $6.74 B | Industrials | Building Products & Equipment |
| 3281 | GLP J-REIT | $6.69 B | Real Estate | REIT—Industrial |
| 7276 | Koito Manufacturing Co. Ltd | $6.66 B | Consumer Discretionary | Auto Parts |
| 7912 | Dai Nippon Printing Co Ltd | $6.59 B | Industrials | Specialty Business Services |
| 4204 | Sekisui Chemical Co. Ltd | $6.57 B | Consumer Discretionary | Residential Construction |
| 9697 | Capcom Co Ltd | $6.55 B | Communication Services | Electronic Gaming & Multimedia |
| 3038 | Kobe Bussan Co. Ltd | $6.52 B | Consumer Staples | Grocery Stores |
| 6967 | Shinko Electric Industries Co. Ltd | $6.48 B | Technology | Semiconductors |
| 1812 | Kajima Corp | $6.34 B | Industrials | Engineering & Construction |
| 4739 | ITOCHU Techno-Solutions Corp | $6.32 B | Technology | Information Technology Services |
| 4967 | Kobayashi Pharmaceutical Co. Ltd | $6.32 B | Consumer Staples | Household & Personal Products |
| 4751 | CyberAgent, Inc. | $6.29 B | Communication Services | Advertising Agencies |
| ZOF | SBI Holdings Inc-Japan | $6.29 B | Financials | Asset Management |
| 7911 | Toppan Printing Co. Ltd | $6.29 B | Industrials | Specialty Industrial Machinery |
| 4185 | JSR Corp | $6.26 B | Basic Materials | Specialty Chemicals |
| MJ8 | McDonald's Holdings Company (Japan) Ltd | $6.25 B | Consumer Discretionary | Restaurants |
| 4922 | KOSÉ Corporation | $6.25 B | Consumer Staples | Household & Personal Products |
| 3003 | Hulic Co. Ltd | $6.23 B | Real Estate | Real Estate Services |
| 9007 | Odakyu Electric Railway Co. Ltd | $6.12 B | Industrials | Railroads |
| 1801 | Taisei Corp | $6.10 B | Industrials | Engineering & Construction |
| 3626 | TIS, Inc. | $6.06 B | Technology | Information Technology Services |
| 3462 | Nomura Real Estate Master Fund, Inc. | $6.04 B | Real Estate | REIT—Retail |
| 7752 | Ricoh Company, Ltd. | $5.99 B | Industrials | Business Equipment & Supplies |
| 8984 | Daiwa House REIT Investment Corp | $5.98 B | Real Estate | REIT—Diversified |
| NEX | Nippon Express Co., Ltd. | $5.97 B | Industrials | Integrated Freight & Logistics |
| 6753 | Sharp Corp | $5.95 B | Technology | Consumer Electronics |
| 3288 | Open House Co. Ltd | $5.79 B | Real Estate | Real Estate—Diversified |
| 9147 | Nippon Express Holdings, Inc. | $5.68 B | Industrials | Integrated Freight & Logistics |
| 6305 | Hitachi Construction Machinery Co. Ltd | $5.68 B | Industrials | Farm & Heavy Construction Machinery |
| 6532 | BayCurrent Consulting, Inc. | $5.66 B | Technology | Information Technology Services |
| 6976 | Taiyo Yuden Co. Ltd | $5.64 B | Technology | Electronic Components |
| 9041 | Kintetsu Group Holdings Co.,Ltd. | $5.54 B | Industrials | Conglomerates |
| 6361 | Ebara Corp | $5.51 B | Industrials | Specialty Industrial Machinery |
| 9501 | Tokyo Electric Power Co Holdings, Inc. | $5.38 B | Utilities | Utilities—Renewable |
| 1802 | Obayashi Corp | $5.37 B | Industrials | Engineering & Construction |
| 9435 | Hikari Tsushin, Inc. | $5.36 B | Industrials | Conglomerates |
| 6724 | Seiko Epson Corp | $5.32 B | Technology | Computer Hardware |
| 3291 | Iida Group Holdings Co. Ltd | $5.31 B | Consumer Discretionary | Residential Construction |
| 9684 | Square Enix Holdings Co Ltd | $5.31 B | Communication Services | Electronic Gaming & Multimedia |
| 6806 | Hirose Electric Co.,Ltd. | $5.29 B | Technology | Electronic Components |
| 3635 | Koei Tecmo Holdings Co. Ltd | $5.21 B | Communication Services | Electronic Gaming & Multimedia |
| 9001 | Tobu Railway Co., Ltd. | $5.17 B | Industrials | Railroads |
| 7747 | Asahi Intecc Co. Ltd | $5.14 B | Healthcare | Medical Instruments & Supplies |
| 2181 | Persol Holdings Co.,Ltd. | $5.14 B | Industrials | Staffing & Employment Services |
| 3141 | Welcia Holdings Co. Ltd | $5.14 B | Healthcare | Pharmaceutical Retailers |
| 2593P | Ito En Ltd | $5.10 B | Consumer Staples | Beverages—Non-Alcoholic |
| 6465 | Hoshizaki Corp | $5.07 B | Industrials | Specialty Industrial Machinery |
| 4183 | Mitsui Chemicals, Inc. | $5.03 B | Basic Materials | Specialty Chemicals |
| 4042 | Tosoh Corp | $4.92 B | Basic Materials | Chemicals |
| 3861 | Oji Holdings Corp | $4.91 B | Basic Materials | Paper & Paper Products |
| 7261 | Mazda Motor Corp | $4.83 B | Consumer Discretionary | Auto Manufacturers |
| 9008 | Keio Corporation | $4.83 B | Industrials | Railroads |
| 6448 | Brother Industries Ltd | $4.79 B | Industrials | Business Equipment & Supplies |
Nikkei 225 ETF List
| Symbol | Name |
|---|---|
| EWJ | iShares MSCI Japan ETF |
| BBJP | JPMorgan BetaBuilders Japan ETF |
| DXJ | WisdomTree Japan Hedged Equity Fund |
| FLJP | Franklin FTSE Japan ETF |
| HEWJ | iShares Currency Hedged MSCI Japan ETF |
| DBJP | Xtrackers MSCI Japan Currency-Hedged Equity Fund |
| DFJ | WisdomTree Japan SmallCap Dividend |
| JPXN | iShares JPX-Nikkei 400 ETF |
| SCJ | iShares MSCI Japan Small Cap ETF |
| FJP | First Trust Japan AlphaDEX Fund |
Nikkei Futures Symbols
| Symbol | Name |
|---|---|
| NIYH0 | Nikkei/Yen Futures Quotes |
| NKDH0 | Nikkei/USD Futures Quotes |
What Is the Nikkei 225?
The Nikkei has been experiencing some selling pressure; much is the case worldwide. Japans eononmy is big. How big? It’s the world’s fifth largest after China, the EU, India, and the United States. Japan is a G7 nation and has built a highly free market system.
Some interesting facts about Japan that may affect the stocks on the Nikkei list: Japan is the world’s largest creditor nation. Japan is experiencing a declining population and very low immigration, which can be a problem for the aging population. Japan has a serious debt to GDP problem…but continues to pay its bills for now.
The Nikkei Index, reviewed yearly in September, ranks its stocks by share price. In contrast to other Indices worldwide, it’s not weighted by market capitalization. Because of this, it doesn’t fully reflect the sector market values of the Japanese stock market.
Other Major Tokyo Stock Exchange
The Tokyo Stock Exchange has another prominent index called TOPIX
(Tokyo Stock Price Index), which tracks the prices of stocks. As noted earlier, the Nikkei Index monitors the top 225 companies listed on the Tokyo Stock Exchange and ranks them based on their stock prices.
In contrast to the Nikkei Index, the TOPIX index ranks stocks by free-float adjusted market capitalization. Additionally, TOPIX tracks all domestic companies listed in the First Section of the Tokyo Stock Exchange and some stocks in the Standard Market. As of 2023, the First Section had a whopping 2176 companies.
There are major differences between the Nikkei Index and TOPIX. Consequently, many consider TOPIX a more accurate reflection of Japan’s stock market. The primary reasons for this are the variation in weighting between the two indices and the larger number of companies included in TOPIX.
What Are the Largest Nikkei Sectors?
As of January 1, 2024, the Information Technology sector accounts for the largest portion of the Index, at 24.23%. The Consumer Discretionary sector is closely behind, with a weightage of 20.97%. Taking third place is the industrial sector at 18.39%. For a complete list of sector breakdowns, click here.
Why the Nikkei 225 Is on Fire
The Japanese stock market entered 2024 on fire, rising to levels not seen in thirty years. This surge is attributed to a decline in the yen’s value and predictions that interest rates will remain low. Not surprisingly, these factors have reignited one of the most powerful rallies in years.
According to data from LSEG, the Nikkei index (N225) has seen a 6% increase over the past two weeks, marking its best start in 10 years. Moreover, the Nikkei’s gains followed a 28% surge in 2023, the most significant yearly increase in a decade.
Contributing factors to this growth include Japan’s improving economic fortunes and the perception that Japanese companies are becoming more attractive investment opportunities.
Moreover, more people are investing in cash from home and abroad, making it easier for the Index to reach new heights. While foreigners sold derivatives in the first week of January, they bought cash equities, meaning more sellers were scarce.
In November, foreign investors bought $15.6 billion worth of Japanese stocks. In 2023, foreigners bought 6.3 trillion yen ($43.5 billion) worth of equity in Japan, the highest in ten years. Moreover, buying activity in the technology sector has increased ninefold since December.
Japan's Economy Is Improving
The country’s economy is showing signs of improvement after years of deflation. Furthermore, the export sector is benefiting from the low yen valuation.
The Bank of Japan appears to be in no rush to reduce core inflation, which has slightly exceeded 2%. Because of this, the yen is still relatively inexpensive compared to its historical averages. Traders believe negative interest rates will remain in place until at least April.
Looking ahead to 2024, the Nikkei 225 index is forecasted to continue its positive momentum. Longforecast.com predicts that the Nikkei 225 will start early March 2024 at 33,756, with a potential maximum value of 35,829 and a minimum value of 31,141.
How Do I Buy Nikkei Stocks?
You can’t buy the Nikkei directly because it’s an index. However, you can gain exposure to the Index by investing in exchange-traded funds (ETFs) with stocks that correlate to it. ETFs consist of a selection of securities or stocks that can be traded during the day and are subject to price fluctuations similar to stocks.
Additionally, several other financial products based on the Nikkei 225 are available for trading on stock exchanges globally, such as futures, options, and warrants.
Let’s review two of the ETFs on the market.
MAXIS Nikkei 225 ETF
The MAXIS Nikkei 225 ETF is an investment fund that tracks the Nikkei 225 with a USE denomination. Furthermore, this fund makes it easy for individual investors to invest in the Nikkei Index. The MAXIS Nikkei 225 has assets worth more than $80 million. You can trade this fund on the ARCA, the electronic ETF trading platform of the New York Stock Exchange (NYSE).
Yen Denominated ETFs
Some ETFs track the Nikkei on the Tokyo Stock Exchange, such as the Daiwa Asset Management ETF and the iShares Core Nikkei 225 ETF. You need a brokerage firm with international trading accounts to invest in these ETFs, like E-Trade or Fidelity.
It’s important to note that investing in Japanese ETFs exposes you to currency risk because these ETFs are listed in yen. This means that any fluctuations in the exchange rate between the dollar and the yen could result in losses. For example, if the dollar increases in value relative to the yen, an ETF that isn’t hedged will suffer exchange rate losses, reducing any gains made in the Tokyo Stock Exchange.
Key Takeaways
- The most commonly cited average of Japanese stocks is the Nikkei225 index.
- The Nikkei 225 is the primary Index for Japanese stocks. It consists of Japan’s top 225 blue-chip companies traded on the Tokyo Stock Exchange.
- The Tokyo Stock Exchange has another prominent index called TOPIX (Tokyo Stock Price Index). TOPIX tracks all domestic companies (2176) listed in the First Section of the Tokyo Stock Exchange and some stocks in the Standard Market.
- The Nikkei Index ranks stocks by share price, whereas the TOPIX is a free-float adjusted market capitalization-weighted Index.
- You can’t invest directly in the Index, but you can gain exposure to the underlying stocks within the Nikkei 225 through an exchange-traded fund (ETF).
Final Thoughts: Nikkei 225 Stocks
The Japanese stock market is experiencing a period of growth that doesn’t appear to be slowing down this year. The Nikkei 225 index is predicted to keep rising and may reach levels of 35,000 to 40,000 by the end of 2024. As a trader and investor, you have a few different options available to invest in the Japanese economy, the easiest perhaps being through ETFs.
Frequently Asked Questions
The Nikkei is the primary Index for Japanese stocks. It is also known as the Nikkei 225 Stock Average (.N225) and consists of Japan's top 225 blue-chip companies traded on the Tokyo Stock Exchange. The Index is weighted based on the price of the included stocks.
The Nikkei Index comprises various companies from 36 industries, including Sony Corporation, Canon Inc., Nissan Motor Corporation, Mazda Motor Corporation, and Panasonic Corporation.
The richest company in Japan is the Toyota Motor Corporation.
The most commonly cited average of Japanese stocks is the Nikkei225 index.
Japan's stock market is located in Tokyo and is known as the Tokyo Stock Exchange (TSE/TYO).
