Advanced English Dialogue for Business – Nikkei index

Listen to a Business English Dialogue About Nikkei index

Madelyn: Hi Molly, have you heard about the Nikkei index?

Molly: No, I haven’t. What is it?

Madelyn: The Nikkei index, also known as the Nikkei 225, is a stock market index that measures the performance of 225 large publicly traded companies listed on the Tokyo Stock Exchange.

Molly: Oh, I see. So, it’s like the Japanese equivalent of the Dow Jones Industrial Average?

Madelyn: Exactly! It’s one of the most widely followed stock market indices in Japan and serves as a barometer of the country’s economy.

Molly: Are there any specific criteria for companies to be included in the Nikkei index?

Madelyn: Yes, companies must meet certain criteria, such as being listed on the Tokyo Stock Exchange’s first section, having a high trading volume, and meeting other financial and trading requirements.

Molly: How is the Nikkei index calculated?

Madelyn: It’s a price-weighted index, which means that the components are weighted based on their stock prices rather than their market capitalization.

Molly: What are some of the sectors represented in the Nikkei index?

Madelyn: The Nikkei index includes companies from various sectors, such as technology, automotive, finance, and manufacturing.

Molly: Does the Nikkei index have any international significance?

Madelyn: Yes, it’s closely watched by investors around the world as a gauge of Japan’s economic health and market sentiment.

Molly: Thanks for explaining, Madelyn. The Nikkei index sounds like an important indicator for understanding Japan’s stock market.

Madelyn: You’re welcome, Molly. It’s a key benchmark that investors use to assess the performance of Japanese stocks and the overall economy.