Trading the Nikkei 225
The Nikkei 225 index is still widely regarded as one of the key measures of stock market activity in Asia, mainly because of the sheer size of the Japanese market and economy.
Like the Dow Jones Industrial Average, the Nikkei is price-weighted, meaning that companies are weighted according to their share price rather than their total free float market cap.
CME Group has a suite of futures products based on the price of the Nikkei 225, and it is easier than ever for an individual to open an account with an approved broker to trade CME Group futures – simply ensure you have a futures-enabled trading account. You can find a list of futures brokers here or find more educational resources on The Armchair Trader on how to trade futures on the Nikkei 225.
Many other tracker products follow the Nikkei. Although the Chinese economy is now larger than Japan’s, the Japanese listed shares market dwarfs China’s, and there are few limitations on foreign investors. Hence, for traders interested in Asian markets, the Nikkei is the stand out first choice. If you’re a UK resident, you’re also able to trade the index through a tax-free spread betting broker.