Japanese Nikkei 225 and TOPIX Indices
As can be expected, the Japanese are quite different in their methodology and calculation of their stock indices, the TOPIX and Nikkei 225, because both are light years apart and have various meanings.
The world reports and focuses on the Nikkei 225 because it is calculated in yen while the Tokyo Stock Price Index (TOPIX indices), are factored in point terms. TOPIX indices are calculated by the Tokyo Stock Exchange while the Nikkei is calculated by Nihon-Keizai Shimbun, a popularly read newspaper in Japan distributed by Nikkei Digital Media. TOPIX indices are free-float adjusted with a market capitalization weight while the Nikkei is an average-price weight where higher-priced stocks impact the index.
The ...
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