Asian Stocks Await Federal Reserve Decision

The **Shanghai Composite** refers primarily to the **SSE Composite Index**, a key stock market index tracking all A and B shares listed on the Shanghai Stock Exchange (SSE), the largest stock exchange in mainland China. Established on July 15, 1991, with a base date of December 19, 1990, and a base value of 100, it was the first index to reflect the performance of the entire Shanghai securities market[1][2][6]. The index is **capitalization-weighted**, meaning companies with larger market capitalizations have a greater influence on the index's value. It currently comprises over **1,500 companies** spanning diverse sectors such as financials, industrials, materials, and consumer goods[1]. The constituents are reviewed semi-annually to ensure the index reflects the most liquid and sizable firms. Historically, the Shanghai Composite has been a vital benchmark for investors monitoring China's capital markets, representing the evolution of China's stock market over more than 30 years. Its performance is seen as an indicator of China’s economic development, though it may not fully capture the entire economy’s health due to the significant role of state-owned enterprises that are not publicly traded[1][2]. Beyond the main composite index, the SSE has developed several subindices for more specific market segments or representative stocks, such as the **SSE 50 Index** (50 largest and most liquid stocks), the **SSE 180 Index** (broader selection of large-cap stocks), and the **SSE 380 Index** (emerging and high-growth companies excluding those in the SSE 180)[2]. Currently, the Shanghai Composite remains a central tool for global and domestic investors to gauge market trends in China. It is widely followed, with its daily performance influencing investment decisions and economic analysis worldwide. However, foreign investor access is somewhat restricted, affecting market dynamics and index behavior[1][4]. Notably, the Shanghai Composite’s longevit

The Nikkei 225, also known as the Nikkei Index, is a pivotal stock market index that represents the performance of the Tokyo Stock Exchange (TSE). It is not an organization but a widely recognized benchmark for the Japanese economy. The index comprises 225 of Japan's top companies, including renowned brands like Sony, Canon, Toyota, and Nissan, across 36 different industries[3][6]. The Nikkei 225 is a price-weighted index, meaning stocks with higher prices have a greater influence on its movements[5]. **History and Evolution:** The Nikkei 225 was first introduced on July 9, 1950, as Japan was recovering from World War II. Initially, it was known as the Nikkei Dow Jones Stock Average but was later renamed after the *Nihon Keizai Shimbun*, or Japan Economic Newspaper[6]. **Key Achievements and Current Status:** The Nikkei 225 serves as a crucial indicator of market sentiment and economic performance in Japan. It is used by investors to gauge Japanese equities and make informed investment decisions[4]. The index is highly influential, often affecting global markets due to Japan's significant economic presence[4]. Notably, the Bank of Japan's monetary policies have had a substantial impact on the Nikkei 225's performance[5]. **Notable Aspects:** - **Diversification and Liquidity:** The Nikkei 225 offers investors a diversified portfolio of leading Japanese companies, mitigating risk and providing high liquidity[8]. - **Global Impact:** Changes in the Nikkei 225 can have ripple effects on international stock indices, making it a closely watched index globally[4]. - **Investment Opportunities:** The index supports various financial products like ETFs and mutual funds, allowing investors to track the Japanese market[4]. Overall, the Nikkei 225 is a vital component of the global financial landscape, reflecting the

The **S&P 500** (Standard & Poor’s 500) is a major stock market index that tracks the stock performance of 500 of the largest publicly traded companies in the United States, representing about 80% of the total U.S. equity market capitalization[1][2]. Established initially as a 233-company index in 1923 by the Standard Statistics Company and expanded to 500 companies in 1957, it has become the premier benchmark for U.S. large-cap stocks and a key indicator of the overall health of the U.S. economy[4]. The index is capitalization-weighted, meaning companies with larger market values have greater influence on its performance. For example, as of late 2025, the ten largest companies—such as Nvidia, Microsoft, Apple, Alphabet, and Amazon—constitute roughly 38% of the index's market cap[1]. The S&P 500 covers all 11 sectors of the economy, providing broad diversification and a comprehensive snapshot of market trends[2][5]. In addition to serving as a market barometer, the S&P 500 is integral to economic forecasting, contributing to composite indicators like the Conference Board Leading Economic Index[1]. Its components are selected by a committee based on criteria such as market capitalization, liquidity, and sector representation[6]. Being included in the S&P 500 is prestigious and financially impactful for companies, as index funds tracking the S&P 500 must buy shares of newly added firms, often boosting their stock prices[2]. Today, the S&P 500 is maintained by S&P Dow Jones Indices, a division of S&P Global, and is widely used to benchmark investment portfolios, guide passive investing strategies, and evaluate firm performance[7][8]. Investors typically access the index through mutual funds or ETFs, gaining instant exposure to a broad swath of the U.S. market. Its role as a market proxy and investment vehicle makes it a cornerstone of bot