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Nikkei
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Nikkei

Japan's benchmark stock index, tracking 225 large-CAP companies on the Tokyo Stock Exchange since 1950.

The Nikkei 225 tracks 225 large-cap Tokyo Stock Exchange companies and has moved sharply on Gulf oil shocks, falling 7.05% on 14 March 2026 as Hormuz closure fears peaked.

Last refreshed: 22 September 2026 · Appears in 1 active topic

Key Question

Why does Japan's Nikkei fall so sharply when Gulf oil supplies are threatened?

Timeline for Nikkei

#12 12 Jun
#30 8 Mar

Fell 7.05% below 52,000 as SoftBank slid 11% and Hang Seng dropped

Iran Conflict 2026: Nikkei falls 7% as Asia-Pacific buckles
View full timeline →

Background

The Nikkei 225 is a price-weighted index of 225 large-CAP companies listed on the Tokyo Stock Exchange, operated by Nikkei Inc since 1950. Like the Dow Jones, its price weighting gives higher-priced constituent stocks greater influence. Alongside the KOSPI and Hang Seng, it is one of Asia's primary gauges of regional economic sentiment, closely tracked by global institutional investors.

Japan imports roughly 90% of its crude oil, leaving the Nikkei structurally exposed to any disruption on Gulf supply routes. During the Iran conflict that broke out in early 2026, the index fell 7.05% in a single session on 14 March, dropping below 52,000 for the first time since January as Hormuz closure fears intensified. Nikkei-listed exporters such as SoftBank fell even harder in the same move.

Nikkei Inc also owns the Financial Times, acquired from Pearson in 2015 for £844 million, giving the company a dual identity as both a financial data provider and one of the world's most influential English-language news organisations. The index remains the primary lens through which international investors read Japanese and North Asian economic health.

Common Questions

Reference

What is the Nikkei 225?
The Nikkei 225 is Japan's benchmark stock market index, tracking 225 large-CAP companies on the Tokyo Stock Exchange. It is price-weighted, like the Dow Jones, and is the primary measure of Japanese equity market health.Source: Nikkei Inc.
Why is the Nikkei so sensitive to oil prices?
Japan has almost no domestic oil production and imports roughly 90% of its crude. Oil price spikes directly raise input costs for the Nikkei's largest components — automotive and electronics manufacturers — compressing margins and driving selling pressure on the index.Source: Lowdown
How does the Nikkei compare to the Dow Jones?
Both the Nikkei 225 and the Dow Jones Industrial Average are price-weighted indices tracking a fixed basket of large-CAP companies. The Nikkei covers Japanese equities; the Dow covers US equities. They often move in tandem on global macro shocks, as seen when Dow futures fell 300 points alongside the Nikkei's initial 2% Iran-conflict drop.Source: Lowdown
Does Nikkei Inc. own the Financial Times?
Yes. Nikkei Inc., the operator of the Nikkei 225 index, acquired the Financial Times from Pearson in 2015 for £844 million, giving it ownership of both Japan's benchmark index and one of the world's leading English-language business newspapers.Source: Entity background
Why did the Nikkei fall 7% in March 2026?
The Nikkei 225 fell 7.05% on 14 March 2026, dropping below 52,000, as Strait of Hormuz closure fears pushed oil above $80 a barrel. Japan imports ~90% of its crude oil, making it acutely vulnerable to Middle East supply disruptions.Source: Lowdown
How does the Iran conflict affect the Nikkei?
The Nikkei is highly sensitive to Gulf oil disruptions because Japan relies on imported crude for ~90% of its energy needs. The Iran conflict caused the Nikkei to fall 2% on first news of the conflict and 7.05% when Hormuz closure fears intensified in March 2026.Source: Lowdown
Why did the Bank of Japan raise interest rates in September 2026?
The Bank of Japan raised its policy rate 25 basis points to 1.25%, a 31-year high, on 18 September 2026. Two board members voted against the move and Governor Kazuo Ueda made no commitment to further hikes; the yen weakened past 157 per dollar rather than strengthening, and the Nikkei 225 rose 1.51% on the day.Source: CNBC, 18 September 2026
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