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💱 Nikkei 225 stock index: tricky but useful⠀
📊 Each analysis tool increases your chances of success. This index will be useful both as a trading asset and as an indicator of the entire Asian market.
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Nikkei 225 Stock Average (JP225, or NiSA) is calculated as a weighted average of the stock price of 225 leading Japanese companies from the TSE listing of the first asset section (here is the list). Moreover, only standard stocks are used without ETF,
REIT, and other derivatives.
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The Nihon Keizai Shimbun newspaper is the legal “owner” of the indicator. JP225 is calculated in JPY, while investment and all exchange assets are denominated in dollars. That is, the valuation of any investment in Nikkei 225 assets depends on the USD/JPY rate.
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That is, the valuation of any investment in Nikkei 225 assets depends on the USD / JPY rate.
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Nikkei 225 has a strong correlation with UK100 (+75.5%), US30 (+72.8%), currency pairs HKD/JPY (+75.6%), USD / JPY (+72.5%), AUD/JPY (+69.2%); as well as feedback with EUR as the base currency: EUR/NZD (-65.2%), EUR/AUD (-64.5%).
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Of the raw material assets, it is worth noting copper - a strategically important industrial raw material for the Asian region. If copper futures prices drop at the close of Chinese exchanges (05:00–07:00 Moscow time) Nikkei will react first.
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Major Asian players first work out all speculations on this index, and only then on currency pairs. The main thing is to clearly understand who is ahead of whom at the moment.
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We will talk about how to work with the JP225 trading asset in the next post.
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Profits to y'all!