Nikkei Stock Average

The Nikkei Stock Average, also known as the Nikkei 225, is a key stock market index in Japan that measures the performance of 225 major publicly traded companies listed on the Tokyo Stock Exchange. It functions as a barometer of Japan's economic health, reflecting how well these large companies are doing financially. The index is calculated using a price-weighted method, meaning that higher-priced stocks have a greater influence on its movement. Investors and analysts use the Nikkei 225 to track market trends, gauge economic sentiment, and make informed investment decisions related to Japan’s economy.