Advanced English Dialogue for Business – Nikkei stock average

Listen to a Business English Dialogue About Nikkei stock average

Jordan: Hi Madelyn, have you ever heard of the “Nikkei Stock Average” in business and finance?

Madelyn: No, I haven’t. What is it?

Jordan: The Nikkei Stock Average, also known as the Nikkei 225, is a stock market index that tracks the performance of 225 top-rated companies listed on the Tokyo Stock Exchange.

Madelyn: So, it’s like a benchmark for the Japanese stock market?

Jordan: Exactly. It’s one of the most widely followed indexes in Japan and serves as a key indicator of the country’s economic health and stock market performance.

Madelyn: How is the Nikkei Stock Average calculated?

Jordan: The Nikkei Stock Average is calculated using a price-weighted methodology, where the stock prices of the 225 constituent companies are weighted based on their respective share prices.

Madelyn: Are there any specific criteria for companies to be included in the Nikkei 225?

Jordan: Yes, companies must meet certain criteria such as being listed on the First Section of the Tokyo Stock Exchange, having a high trading volume, and being representative of key sectors of the Japanese economy.

Madelyn: What are some of the sectors represented in the Nikkei 225?

Jordan: The Nikkei 225 includes companies from a wide range of sectors including technology, automotive, finance, and consumer goods.

Madelyn: How often is the Nikkei Stock Average updated?

Jordan: The Nikkei Stock Average is updated in real-time throughout the trading day, reflecting changes in the prices of its constituent stocks.

Madelyn: What factors can influence the movement of the Nikkei Stock Average?

Jordan: Factors such as economic indicators, corporate earnings reports, geopolitical events, and changes in investor sentiment can all impact the movement of the Nikkei Stock Average.

Madelyn: Thanks for explaining, Jordan. The Nikkei Stock Average seems like an important tool for investors interested in the Japanese stock market.

Jordan: You’re welcome, Madelyn. It provides valuable insights into the performance and trends of Japan’s leading companies and overall economy.