Nikkei 225

## What this measures

This signal tracks the Nikkei 225, a price-weighted index of 225 highly liquid stocks traded on the Tokyo Stock Exchange. It reflects the daily closing value of Japan's leading equity benchmark.

## Why it matters

The Nikkei 225 serves as a barometer for Japan's equity market and broader economic sentiment, influencing decisions about Asia-Pacific exposure, currency hedging, and supply chain planning. Moves in this index can signal shifts in investor confidence, corporate profitability expectations, and macroeconomic conditions in the world's third-largest economy.

## How to read it

A rising index indicates strengthening equity values and improving investor sentiment toward Japanese stocks; a falling index suggests the opposite. Compare levels over time to assess trends, and consider moves in context with other regional equity indices and the yen.

## What it does not say

This index does not reveal which sectors or individual companies are driving its movement, nor does it account for dividends or adjust for inflation. It reflects only price changes for its 225 constituents and may not represent the full breadth of Japan's equity market.

## Source

The index is published by Nikkei Inc. Palanor pulls this series from the FRED API (Federal Reserve Bank of St. Louis) nightly.