What is the Nikkei 225 Index? The Nikkei 225 Index, so how is the Nikkei 225 market performance? Understanding the Nikkei 225's performance—how can one better understand the Nikkei 225? A detailed introduction to the relevant situation.

Many institutional investors use the Nikkei 225 as a benchmark for the performance of the Japanese stock market. The Nikkei 225 employs a price-weighted calculation method similar to the Dow Jones Index. Its advantage is simplicity in calculation, but its drawback is also evident: the index price is heavily influenced by high-priced stocks. For example, the top-weighted stock, Fast Retailing, does not have an exceptionally large market capitalization, but due to its high stock price, it accounts for over 10% of the Nikkei 225's weight. Thus, changes in Fast Retailing's price have a significant impact on the entire index. This is a major difference from most other indices that use market-cap weighting. Among these, the first three track the Nikkei 225 Index, while the last one tracks the TOPIX Index. From the perspective of tracking the overall Japanese market, the Southern Topix ETF is a better choice because its investment targets actually include all 2,000+ stocks listed on the Tokyo Stock Exchange First Section (equivalent to the main board of China's A-share market), covering both large blue-chip stocks and small-to-medium-sized stocks, providing a comprehensive measure of fluctuations in the Japanese stock market. Additionally, since the TOPIX Index uses market-cap weighting, its investment costs are lower than the price-weighted Nikkei 225, making it more cost-effective for investors. Of course, the Nikkei 225 is also a good option because it focuses on 225 large blue-chip stocks, making it more concentrated compared to the diversified TOPIX Index. Moreover, most of these 225 constituent stocks have a high proportion of international business, making them more susceptible to global economic fluctuations. Coupled with the Nikkei 225's long history and abundant data and research materials, it serves as an excellent avenue for overseas investors to invest in Japan's large blue-chip market.

To keep track of the Nikkei 225 Index's performance, it is essential to find a reliable platform for trading Nikkei 225 products.