Browser wrote: If the DOW were up 216 today, all the talking heads would be raving. But a move like that in the Nikkei never gets noticed. Why are the moves in the Nikkei often so large, and why isn't it a big deal to all the market yip yappers?
I assume you are not watching/reading Japanese news, where the moves in the Nikkei get plenty of notice (I can't count the number of times it has made the front-page headlines in the past couple of months), and moves in the Dow are rarely commented on (though the DOW and the FTSE numbers do get duly listed in the sidebar at nikkei.com, for those who are really interested). If you are using US news sources, it is only natural that they are more interested in the Dow than the Nikkei, I think.
Valuethinker wrote:Also the Dow is price weighted not market cap weighted.
The Nikkei is also price weighted. Though it holds many more stocks than the Dow (225 as opposed to 30), so all else being equal one might expect it to be less volatile.
Karamatsu wrote:It's an interesting question. Take a look at this [url=http://finance.yahoo.com/q/ta?s=^N225&t=1m&l=on&z=l&q=l&p=&a=&c=^DJI]graph[/url] for the past month, for example. Compared to the Dow, the Nikkei has been pretty violent.
I think the Nikkei is extra volatile right now because the yen is right now, in response to the start of "Abenomics" since last December. (Or rather, the jawboning about Abenomics, since the government hasn't actually done much yet besides state intentions and get personnel appointments lined up.) The Nikkei is more sensitive to the value of the yen than the Dow is to the value of the dollar, I believe. ...Which should increase the volatility of the Nikkei in general, I suppose.