Nikkei 225 - Blue Chip Index of the Tokyo Stock Exchange

What is the Nikkei 225?

The Nikkei 225 is the major stock index for the Tokyo Stock Exchange in Japan, which is the largest exchange in Asia.  The Nikkei is comprised of 225 blue chip stocks on the Tokyo Exchange and these issues are weighted based on their respective price.  Stocks are reviewed on a yearly basis to ensure they continue to meet the strict requirements set forth by the exchange.  The Nikkei 225 is the Japanese version of the Dow Jones Industrial Average.

Nikkei Bear Market

The Nikkei experienced one of the worst bear markets in recent history from the late 80's through 2003.  The Nikkei reached a peak of 38,915.87 on December 29, 1989.  From this high the Nikkei lost over 64% of its value before reaching a low of 14,194 in 1992. 

Important dates in history for the Nikkei 225

• September 7, 1950 - the Tokyo Stock Exchange begins tracking the Nikkei Index and does so retroactively back to May 16, 1949
• September 3, 1988 - Osaka Securities Exchange starts Nikkei Stock Average Futures
• December 29, 1989 - Nikkei reaches all-time high of 38,915.87
• October 9, 2008 - Nikkei suffers worst one-week loss of 24%