While the Nikkei 225 Index may often be overlooked as a major international index, it remains one of the biggest instruments in Asia.
As the name suggests, it comprises 225 strong and high-performance Japanese stocks, while it currently boasts a total market cap value of $4.49 trillion.
But what exactly is the Nikkei 225 and its core strength, and what are the best performance Japanese video game stocks listed in 2021?
What’s the Nikkei and its Strengths?
As we’ve already touched on, this index lists the 225 largest companies by price weighting on the Tokyo Stock Exchange, while its sheer size and scope makes it a key measure of stock market activity in Asia.
Because of this, investors tend to follow the Nikkei 225 to track and trade Japanese stocks online, while also gauging sentiment across various markets and asset classes in the East Asia region.
Certainly, this index features a host of renowned stocks, including the iconic automotive brands Honda and Toyota. You’ll also find electronics giants such as Sony and Panasonic listed on the Nikkei 225, alongside miscellaneous brands like Nintendo, Oriental Land and Mitsubishi.
The Top Gaming Stocks on the Nikkei
Interestingly, you’ll also find that the Nikkei 225 also lists a relatively large number of software and video game stocks, many of which have performed well through 2020 and in the wake of the coronavirus pandemic.
Certainly, shares in gaming companies are gaining considerable traction on the Nikkei, particularly as investors snap up high value stocks despite moves from the Chinese government to limit playing time for children nationwide.
With this in mind, here’s a brief look at the index’s leading stocks and their most recent share price performance:
#1. Koei Tecmo Holdings
This video game software brand is one of the best known in Asia, thanks largely to its role in creating the hit games’ franchise “Romance of the Three Kingdoms”.
During October alone, this stock soared by a staggering 23%, increasing from 4,900 JPY on October 5th to 5,390 JPY at the beginning of November.
Interestingly, this followed a sharp depreciation in share value at the beginning of Q3, enabling investors to identify discounted stocks that offer increased value to investors.
#2. Konami Holdings
During the same four week period, Konami Holdings saw share price growth of 13%, peaking at 6,630 JPY per stock on October 27th.
The video game giant, which is the power behind the popular “eFootball” title, also experienced such growth after a sharp price decline at the beginning of the third quarter.
However, it appears to be rebounding strongly, driven by improving market sentiment and increased demand from investors.
Finally we come to Capcom, which is a Japanese-based game developer and the brains behind the truly iconic “Resident Evil ” franchise.
In the first four weeks of quarter four, this brand has seen its share value rise by 11%, following the example of others by out perming most blue-chip stocks on the index.