The Nikkei Stock Average Basics

Initially founded in 1876, the Nikkei is the most watched stock market index in Japan. It is perceived to be the primary source for business information with its flagship newspaper, The Nihon Keizai Shimbun, being one of the world’s largest-selling business daily.

It incorporates the Dow Jones calculation method to establish current stock prices, which it has been using since September 7, 1950. Originally the Tokyo Stock Exchange (TSE) calculated the Tokyo Stock Exchange Adjusted Average Stock Price from May 16, 1949 until that period so the measurement of this market goes over 55 years.

The Nikkei Stock Average currently has 225 components which are among the most actively traded issues on the first tier of the TSE.