Tokyo Price Index (TOPIX) 2025: Latest Prices and Sector Breakdown

What is the Tokyo Price Index (TOPIX)?

The Tokyo Price Index, widely known as TOPIX, is a capitalization-weighted stock market index that tracks the performance of all large companies listed in the first section of the Tokyo Stock Exchange (TSE). This index offers a comprehensive view of Japan's largest publicly traded firms by market capitalization, making it a vital benchmark for investors interested in the Japanese market.

Key Highlights

• TOPIX is calculated and published by the Tokyo Stock Exchange and represents companies in the TSE's first section, which includes Japan’s largest corporations.
• Unlike the Nikkei 225, which is a price-weighted index of 225 top blue-chip companies, TOPIX provides a broader and more balanced market representation.
• Investors can gain exposure to TOPIX through various exchange-traded funds (ETFs), such as the TOPIX Core 30 ETF, which tracks the performance of the largest and most liquid stocks in the index.

Understanding TOPIX’s Role in Japan’s Stock Market

As Japan's largest stock exchange, the TSE manages TOPIX, which is considered a more accurate reflection of the Japanese stock market’s overall movement compared to other indices. TOPIX's capitalization-weighted methodology ensures that companies are weighted according to their market value, providing a fair assessment of market trends.

Sector Indices within TOPIX

TOPIX is subdivided into 33 sector indices, grouping companies by industry categories such as construction, textiles, machinery, electric power, transportation, retail, banking, insurance, pharmaceuticals, and more. These sector indices help investors analyze performance trends within specific segments of the Japanese economy.

Additionally, the Tokyo Stock Exchange publishes various subindices under TOPIX, including the TOPIX New Index Series, size-based subindices, dividend-focused indices, and real estate investment trust (REIT) sector indices, offering diverse investment insights.

Transition to Free Float Weighting

Between 2005 and 2006, TOPIX transitioned from weighting companies based on total outstanding shares to a free float system, which weights companies according to shares available for public trading. This change improved the index’s accuracy by excluding shares held by business partners in keiretsu arrangements—unique Japanese corporate alliances characterized by cross-shareholding among firms.

Fast Fact

The keiretsu system, meaning "headless combine," describes Japan’s tradition of close business relationships and equity stakes among partner companies.

Investing in TOPIX: The Core 30 Index and ETFs

The TOPIX Core 30 Index tracks 30 of the largest and most liquid stocks within TOPIX, including household names like Honda, Canon, Mitsubishi, Sony, and Toyota. Launched in 1998 with a base value of 1,000, it serves as a focused benchmark for blue-chip Japanese stocks.

While investors cannot buy the index directly, they can invest in ETFs that replicate TOPIX’s performance. For example, the Nomura Asset Management Company offers the TOPIX Core 30 ETF, designed to mirror the index’s composition, providing investors with diversified exposure to Japan’s leading companies.

Discover the latest news and current events in Markets as of 07-07-2020. The article titled " Tokyo Price Index (TOPIX) 2025: Latest Prices and Sector Breakdown " provides you with the most relevant and reliable information in the Markets field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " Tokyo Price Index (TOPIX) 2025: Latest Prices and Sector Breakdown " helps you make better-informed decisions within the Markets category. Our news articles are continuously updated and adhere to journalistic standards.