Trading major Asian stock index - Everything you should know

24 June 2021

Trading indices is pretty much like trading stocks. The only difference is that an index is a combination of different companies rather than an individual one. This group of stocks can represent the whole market of a certain country or a specific industry. The Asian stock indices are a group of stocks representing Asian economies.

Some of the best known Asian indices include Nikkei 225, which represents 225 leading Japanese stocks, SSE Composite Index, representing all of the stocks that are traded at the Shanghai Stock Exchange, BSE SENSEX which represents 30 well-established companies from the Bombay Stock Exchange, and many others.

Trading Asian indices are very similar to trading indices from any other market, even CFD indices. However, there are some things that you should keep in mind while investing in Asian stock indices. In today's guide, we are going to talk about the most popular ones and ways to trade them. So, follow our guide and find the best stock index on the Asian market.

List of the most important Asian stock indexes

The Asian market is full of different stock indices that are very popular among traders. Some of the most popular Asian stock indices include indexes such as:

Nikkei 225
Hang Seng Index
BSE SENSEX
SSE Composite Index
JSX Index of Indonesia

These indices represent some of the biggest economies of Asia. The main reasons behind their popularity are that Asian economies are developing very fast and can be a great investment for both long-term investors and short-term traders.

Below, we are going to talk about some of the most popular Asian stock indices. So, follow our guide to find the best Asian stock exchange market index.

Nikkei 225

The Nikkei 225, also known as the Nikkei Stock Average, is a very popular index traded in the market. It represents 225 leading stocks listed on the Tokyo Stock Exchange and is calculated daily.

Nikkei 225 includes the largest and most liquid stocks listed on the Tokyo Stock Exchange. Created back in 1950, Nikkei 225 is regarded to be a national benchmark index and an indicator of the performance of the Japanese stock market. Because of the importance of Nikkei 225, it is one of the most popular Asian stock exchange indexes.

Hang Seng Index

Introduced back in 1969, the Hang Seng Index, HSI, is one of the most quoted indicators, tracking the Hong Kong stock market performance. HSI represents 52 stocks, representing about 50 percent of the capitalization of the Hong Kong Exchange, HKEX.

Hong Kong is the third-largest stock market in the region following mainland China and Japan, with a total market capitalization of almost $7 billion.

The Hang Seng Index includes companies across different industries, including finance, utilities, properties, as well as e-commerce, and many others. The Commerce & Industry represents 47 percent of the total weight of the index.

Among the companies that are part of the index, you can find Tencent, Alibaba, Xiaomi, Meituan, and many others. It also includes tasks such as HSBC, CCB, and so on. The top 10 constituents of the index represent the 61% of the index's whole value.

BSE SENSEX

Among the most popular Asian stock index trading economics is definitely the representative of the Indian stock market, BSE SENSEX. It represents a free-floating market-weighted stock market index and lists as many as 30 well-established and successful companies listed in the Bombay Stock Exchange. These companies represent various industrial sectors of the Indian economy. The BSE SENSEX was first published in 1986.

In the history of the SENSEX, the second-worst day for the index was on March 9, 2020, when it tumbled down by 1941,67 points because of the fears of the Covid-19 pandemic and the Yes Bank crisis. It was soon followed by another decrease of 2919,26 points on March 12.

SSE Composite Index

While talking about Asian stock market index ETF trading, we should also discuss the SSE Composite Index, also known as SSE Index. It is a stock market index that lists all the stocks that are traded at the Shanghai Stock Exchange.

There are also Mega-cap indexes available from the Shanghai Stock Exchange, such as SSE 180, SSE 50, as well as SSE 20, which measure the performance of the leading companies in the country.

There also is a CSI 300 Index available in the country, which includes shares traded at the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Indonesia: JSX Index

Indonesia: JSX Index, simply known as IDX Composite is an index that includes all of the stocks that are listed on the Indonesia Stock Exchange. The index currently includes all of the 532 companies listed on the Indonesia Stock Exchange.

Final thoughts on best Asian stock index

Trading Asian indices is very popular around the world, and it is no different from trading indices from any other part of the world. There are many indices in the Asian market, representing the economies of the region. Some of the most popular indices in Asia include Nikkei 225, Hang Seng Index, BSE SENSEX, and so on.

Because there are many countries in Asia that have high economic growth, the indices trading market in the region is developing very fast, creating numerous opportunities for traders.

Frequently Asked Questions on Asian stock index trading

What are the Asian stock markets doing right now?

At the moment of writing, the Asian stocks are down. The major reason for it is the worries over high levels of inflation in the regions and the increasing cases of the Covid-19. The increasing Covid-19 cases in India are affecting the performance of the whole region, as the Asian stocks erase the gains of 2021.

What time do the Asian markets open UK time?

The biggest exchange in Asia, Tokyo, is open from midnight to 6 AM UK time, Shanghai opens at 1:30 AM and closes at 8:10 AM. Shenzhen opens at 1:30 AM and closes at 7:00 AM UK time.

Also, unlike many other stock exchanges, the majority of the Asian markets stop for lunch, and the breaks vary in length. For example, the Shenzhen Stock Exchange has a lunch break every trading day from 12:30 PM until 1:00 PM local time. As for the Shanghai Exchange, it has a longer lunch break, lasting for an hour and a half.

What are the 3 major stock indexes?

The three largest stock indices are Dow Jones Industrial Average, Standard and Poor's 500 Index, and NASDAQ 100 Index. The Dow Jones Industrial Average is the oldest and most popular of the stock indices available in the market.

The index is composed of as many as 30 stocks and represents different sectors of the country. S&P 500 represents the 500 best-performing companies in the market, while NASDAQ 100 Index is composed of the 100 largest companies traded on the NASDAQ.

What are the major Asian stock markets?

There are many stock exchanges in Asia, the most popular and biggest ones being the Tokyo Stock Exchange of Japan, Shanghai Stock Exchange of China, Hong Kong Stock Exchange, Shenzhen Stock Exchange of China, Bombay Stock Exchange of India, and many others.