Top Stocks to Watch on the Nikkei Index in 2024
The Nikkei index, or the Nikkei 225, is the stock market index for Japan’s leading exchange, the Tokyo Stock Exchange. The components of the index include 225 of Japan’s blue-chip companies. Unlike the TOPIX, another popular Japanese stock index weighted by capital, the Nikkei is weighted according to share price.
Companies in the Nikkei are representative of various sectors, including technology and communication services. Industrials, healthcare, and consumer discretionary also comprise several constituents in the index.
While buying an index directly is impossible, various ETFs track the Nikkei, which can be traded on the Tokyo Stock Exchange.
For anyone considering indices trading, it’s useful to know the status of the top companies that enjoy prime positions. The following are the leading companies featured on the Nikkei index:
Sony Group Corporation
With a market cap of over $126 billion, Sony Group is the most prominent company in the index. Representing the technology sector, the renowned global company specializes in consumer electronics. Originally founded as Tokyo Telecommunications Engineering Corporation in 1946, Sony has created iconic products, including the Walkman and PlayStation.
Their innovations, including healthcare and biotech industry developments, have earned them a worldwide reputation as a successful, global manufacturer.
Keyence Corp
Another technology company, Keyence, specializes in scientific and technical instruments, including factory automation equipment, sensors, barcode readers, and digital microscopes. A global leader in their field, Keyence have enjoyed an annual growth of over 10% for over 20 years. They’re also known as one of the world’s most innovative companies, with a global network spanning 46 countries.
Nippon Telegraph & Telephone Corp
A Japanese telecommunications holding company, NTT provides services such as fiber, cloud-based operations, and global solutions within the telecommunications sector. Since 1952, the company has sought to deliver automatic connection to all homes in Japan and now enjoys a global presence.
Mitsubishi UFJ Financial Group, Inc.
Mitsubishi UFJ Financial Group, Inc. is a Japanese bank holiday company, one of the world’s leading financial groups. Services include commercial and trust banking, credit cards, and asset management, among many others. With a market cap of over $85 billion, it’s the highest-performing company in the banking sector featured on the Nikkei index.
Investing in the Nikkei index
As one of the most prominent indices in Asia, the Nikkei is popular among investors and traders. The Nikkei offers exposure to some of the world’s leading companies across various sectors and is a good choice for those looking to expand their portfolio. It also provides an opportunity to invest in one of the world’s most influential economies.
However, it’s also important to remember that trading any market is not without risk. Similar factors are likely to affect the performance of many constituents listed on the Nikkei, so it’s wise to become familiar with the aspects that influence market direction.