What is the Nikkei 225 Index and How Can You Trade it?

The Nikkei 225 Index is the most popular Japanese index. Consisting of 225 blue-chip companies with listings on the Tokyo Stock Exchange it's widely thought of as an indicator of the wider Japanese economy.

Its history dates back to September 1950 and is named after the Nihon Keizai Shimbun newspaper (translated as the Japan Economic Daily) and although there is a Nikkei 30 index that has gained some traction with investors, the main index is called the Nikkei 225, Nikkei index or simply Nikkei.

It has all the Japanese giants of industry within it - Toyota, Nissan, Honda, Panasonic, Sony and Mitsubishi - to name a few.

40% of stocks are from the technology sector, with financials and consumer goods following after them. It's a price-weighted index akin to the Dow Jones in the U.S., so larger companies can outweight the smaller ones in the calculation of the index itself.

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