The Nikkei 225 – Japan’s key stock index comprising 225 companies from the Land of the Rising Sun listed on the Tokyo Stock Exchange. It is calculated as the arithmetic mean of their values. The index was introduced in 1950 and named after the newspaper that first applied such a calculation methodology to the Japanese stock market.
The Tokyo Stock Exchange (TSE) is one of the largest in the world, with over 2,000 companies represented, including brands known to everyone – Toyota, Sony, Mitsubishi, Nintendo, SoftBank, and many others. In terms of market capitalization, TSE is second only to the New York Stock Exchange.
The historic peak of #NIKKEI was reached on December 29, 1989, when the index rose to 38,957 points during the day’s trading. And now, for the first time in 34 years, in our days, #NIKKEI has exceeded the 40,000-point mark.
FreshForex analysts point to the following factors driving the growth of the Japanese stock market in 2024:
Strengthening of technology company stocks and reports of high corporate earnings,
Investor optimism amid billionaire Warren Buffett’s investment in major Japanese companies (Berkshire Hathaway holding),
Exporter stocks supported by a weakening yen, increasing their profits in the national currency,
Rising inflation to 2.8% – a radical change compared to the deflation of previous years when constant price declines negatively affected company profits.
Thanks to these factors, traders worldwide see increasing opportunities in the Japanese market.
In 2023, the Nikkei 225 gained 29%, marking the highest annual growth in a decade. And since the beginning of the current year, it has added another 22%, making the contract extremely attractive for investment.
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