Nikkei 225: Market overview
What is the Nikkei 225?
The Nikkei 225 is the leading index for the Japanese stock exchange in Tokyo. It’s made up of 225 of the most prominent listed companies in Japan.
It’s also known as the Nikkei Stock Average, or simply ‘the Nikkei’.
The Japanese stock market’s regular trading hours are Monday to Friday 9am to 3pm (12am to 6am GMT), usually with a lunch break between 11:30am and 12:30pm.
Companies listed on the Nikkei 225 market index are called constituents. Household names on the Nikkei include Asahi, Mitsubishi and Nikon.
How to invest in the Nikkei 225
You can choose to buy the shares of individual companies listed on the Nikkei, or track the performance of the index as a whole.
Common ways to track performance include investing in index tracker funds or Exchange Traded Funds (ETFs). This method of investing provides more diversification than choosing individual shares but you should remember that all investments go down as well as up, so you could get back less than you invest.
Investing in individual companies isn’t right for everyone – it’s higher risk as your investment is dependent on the fate of that company. If a company fails, you risk losing your whole investment. You should make sure you understand the companies you’re investing in, their specific risks, and make sure any shares you own are held as part of a diversified portfolio.
If you’re not sure of the suitability of an investment for your circumstances seek advice.