Markets & Indices

A stock index composed of 500 major American companies, considered the best representation of the overall U.S. stock market. Calculated using market-cap weighting, many index funds and ETFs track this index.

A special settlement price used for the final settlement of stock index futures and options. It is calculated on the second Friday of every month, and March, June, September, and December are called "Major SQ" when market volatility tends to increase.

A stock index composed of 30 representative American companies, officially called the "Dow Jones Industrial Average." It has a significant impact on global stock markets, and Japanese investors also watch it closely due to its high correlation with the Nikkei 225.

The UK's leading stock market index composed of the top 100 companies by market capitalization listed on the London Stock Exchange. It is one of Europe's major indices and includes many global companies. Trading takes place from the evening to night in Japan time.

A family of global stock market indices calculated by MSCI Inc. (formerly Morgan Stanley Capital International). It includes multiple indices such as MSCI World (developed markets) and MSCI Emerging Markets, used as benchmarks by institutional investors worldwide.

A measure that splits one share into multiple shares to lower the price per share and make investment more accessible. For example, in a 1:2 split, the price halves and the number of shares doubles. The company's actual value does not change.

The exchange ratio between different currencies. For Japanese stock investing, the USD/JPY rate is especially important; a weaker yen benefits exporters while a stronger yen benefits importers. It also affects investments in foreign stocks and foreign currency-denominated assets.

The cost (interest rate) of borrowing money. The policy rate set by central banks significantly impacts the stock market. Generally, when interest rates rise, stock prices fall, and when rates fall, stock prices rise.

Bonds issued by a government to raise funds. Japanese government bonds are called "JGBs." Bond interest rates (yields) are closely related to stock market movements, and rising long-term rates generally have a negative impact on stock prices.

The outstanding balance of spot stock purchases associated with arbitrage trading (trading that exploits price differences between futures and spot). High arbitrage long balance increases future selling pressure and the risk of price declines from unwinding. It is watched as a supply-demand indicator.

A stock market index covering all stocks listed on the Shanghai Stock Exchange in China. It is an important indicator of the Chinese economy and has a significant impact on the entire Asian market. It is closely watched due to its high correlation with Japanese stocks.

An indicator measuring changes in the prices of goods and services purchased by consumers, representing a key measure of inflation. Rising CPI means inflation, falling means deflation, significantly influencing central bank monetary policy.

An indicator showing the overall level of unrealized gains and losses among investors with margin long positions. The larger the negative value, the greater the unrealized losses and the higher the risk of margin calls. It is often used to assess market bottoming.

A stock index composed of 400 companies selected based on capital efficiency metrics such as ROE and operating profit. It aims to select companies that are attractive to investors and serves as an indicator evaluating corporate earning power.

The total added value of goods and services produced within a country over a set period. The most fundamental economic indicator showing economic size and growth. Positive GDP growth means economic expansion, negative means recession.

The market for emerging companies on the Tokyo Stock Exchange, listing companies with high growth potential. It transitioned from the former Mothers and JASDAQ Growth in the April 2022 restructuring. A characteristic feature is that many stocks have large price movements.

The mid-tier market of the Tokyo Stock Exchange for companies with a certain level of market capitalization and liquidity. It transitioned from the former TSE Second Section and parts of JASDAQ in the April 2022 restructuring. Many mid-sized companies familiar to individual investors are listed here.

The top-tier market of the Tokyo Stock Exchange, designed for large companies that emphasize constructive dialogue with global investors. It transitioned from the former TSE First Section in the April 2022 market restructuring. It has the strictest listing standards.

An index showing the performance of all REITs (Real Estate Investment Trusts) listed on the Tokyo Stock Exchange. It reflects changes in the real estate market and interest rate environment, serving as a benchmark for REIT investment decisions. It sometimes moves differently from the stock market.

An indicator calculated by dividing the number of advancing stocks by declining stocks and multiplying by 100, used to assess overall market overheating or cooling. Above 120% is considered overbought, below 70% oversold. It is popular as a reference indicator for contrarian investing.

A stock index covering stocks listed on the Tokyo Stock Exchange that meet certain criteria. Unlike the Nikkei 225, it is weighted by market capitalization, making it considered a more accurate reflection of overall market movements.

The exchange rate between the U.S. dollar and Japanese yen, the most influential forex indicator for the Japanese stock market. Displayed as "1 USD = 150 JPY," where a larger number means a weaker yen and a smaller number means a stronger yen.

An American electronic stock market where many technology companies are listed. World-renowned IT companies such as Apple, Google, and Amazon are listed here. The NASDAQ Composite Index is an important indicator of high-tech stock trends.

A quarterly business sentiment survey by the Bank of Japan, officially called the "Short-term Economic Survey of Enterprises in Japan." The Diffusion Index (DI) for large manufacturers is especially watched, influencing stock markets as a leading economic indicator.

An index that predicts the magnitude of stock price fluctuations over the next month, calculated from Nikkei 225 option prices. Also called the "fear index," higher values indicate greater market instability. It normally fluctuates in the range of 20 to 30.

A representative Japanese stock index calculated from the stock prices of 225 companies listed on the Tokyo Stock Exchange Prime Market. It is an important indicator of Japanese economic trends and is frequently featured in the news.

An index showing expected market volatility calculated from S&P 500 option prices. It normally ranges around 15-25, but spikes when market anxiety increases. Above 30 is considered "fear" level, and above 40 is "panic" level.