Nikkei 225 USD-denominated futures provide investors with an efficient way to access the opportunities of the Japanese equity market and trade using U.S. dollars. Japan's premier stock index, the Nikkei 225, includes the top 225 bule-chip companies listed on the Tokyo Stock Exchange. Nikkei 225 Yen-denominated futures allow market participants to gain exposure to Japan's premier stock index while also gaining exposure to the Japanese yen. An efficient way to monitor Japan's economy and stock market, Nikkei 225 includes the top 225 blue-chip companies listed on the Tokyo Stock Exchange.
Contributing factors:
1. Economic growth
2. Inflation
3. Productivity index
4. Operating status of each listed company
5. International financial trends
6. Policy changes in neighboring countries
7. Japanese local factors (the Japanese political situation, the central bank's zero interest rate policy, the impact of the yen exchange rate trend)
Advantages:
1. Link to the Japanese benchmark index in one transaction
2. Flexible contract variety, offering yen and dollar-denominated contracts
3. Liquidity is abundant, and there is an objective spread trading opportunity between the yen and the U.S. dollar
4. 24/7 electronic trading on CME Globex
5. Meet the requirements of the Mutual Credit Mechanism (MOS), have more trading opportunities, and can trade across time zones
6. CME clearing reduces counterpart credit risk
