Interesting facts about the NI225 (Japan 225 Index)
Nikkei Heikin Kabuka or, if you put it in English, the Nikkei Stock Average (Nikkei 225, NI225) is an index calculated like this: the summation of the adjusted price is divided by the divisor that aims to maintain the index content by ruling out the effect of external factors.
The Nikkei 225 index got its name after the newspaper that sponsors it, whose nickname is the same as the name of the index. The full name of the paper is Nihon Keizai Shimbun. The word "Nikkei" also means "the descendants who left Japan".
The first name of the index was the Nikkei Dow Jones, which was introduced in 1949. In 1950, the name was changed to the one we know now. During 1980-2000, four new indices appeared on the base of Nikkei 225 – Nikkei 500, Nikkei 300, JASDAQ, and Nikkei All Stock index. The index price is updated every five seconds during the trading session period.
Japanese nature has a great impact on the index. The huge and dreadful earthquake that happened in March 2011 made the price fall by 10% in a single day, but it didn’t stop there. The year 2011 overall was not the best one for the index shareholders as the price reached the lowest point since 2009 when the index suffered the consequences of the Japanese market bubble.
There were some rumors that the rise that the index experienced in 2013 was artificial. Some people claim that the Bank of Japan made certain purchases to help Nikkei 225 cope with the fall of 2011.
One way or another, the index rocketed up in 2021 and broke a record, gaining heights it had never reached during the previous 30 years. In October 2021, the index had lots of widely-known large companies in various spheres, for example:
- Fishing giants like Maruha Nichiro Holdings and Nippon Suisan Kaisha.
- Construction corporations like Comsys Holdings, Daiwa House Industry, Sekisui House, and JGC Corporation.
- Shipbuilding companies, such as Kawasaki Heavy Industries and Mitsui Engineering & Shipbuilding Co.
