TOPIX is the principal broad benchmark of Japan’s Tokyo Stock Exchange.
TOPIX stands for Tokyo Stock Price Index. It is a free-float-adjusted market-capitalization-weighted index covering companies listed on the Tokyo Stock Exchange’s Prime Market. Because it includes a broad range of Japanese companies, it is commonly used alongside the Nikkei 225 when discussing Japan’s equity market.
The index was introduced on July 1, 1969, with a base value of 100 as of January 4, 1968. Its methodology has changed over time, including reforms intended to improve investability and focus on companies with higher market quality and liquidity.
TOPIX and the Nikkei 225 are not interchangeable. The Nikkei 225 is a price-weighted index of 225 companies, while TOPIX uses free-float-adjusted market capitalization and represents the Prime Market more broadly. Their daily returns can therefore differ substantially.