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Nikkei Asia300 Index data shows strong growth

Index covers roughly 300 influential companies in 11 countries/regions in Asia

In December 2016, Nikkei Inc. compiled and began publishing the Nikkei Asia300 Index, a new stock index that covers some 300 influential listed companies in 11 Asian countries and regions, excluding Japan. The index is designed to indicate broad movements in the stock prices of Asian companies whose presence is growing in global stock markets.

Higher than world's main stock indexes

The Nikkei Asia300 Index is calculated by setting the level on Dec. 1, 2015 as the base value of 1,000. For comparison, the index was measured against the Nikkei Stock Average, the U.S. S&P 500 stock index and Europe's STOXX 600 index, going back to December 2005. The Nikkei Asia300 Index has risen much faster than these major world stock indexes.

Nikkei Asia300 Index versus other global stock indexes

  • Nikkei Asia300
  • Nikkei Stock Average
  • U.S. S&P 500
  • STOXX Europe 600

*All indexes measured graphically against the value of the Nikkei Asia300 Index, as of Dec. 1, 2005; actual index figures shown in parentheses

While the Nikkei Asia300 Index has roughly doubled over the past 10 years, the Nikkei Stock Average and the STOXX 600 have grown more slowly. The rise in the Nikkei Asia300 Index is also noticeably higher than that of the S&P 500, which has recovered from the global economic crisis triggered by the collapse of Lehman Brothers in the summer of 2008. The sharp rise in the Nikkei Asia300 index reflects Chinese companies' increasing stock prices in line with high the country's rapid economic growth, as well as expectations for the growth of companies in Southeast Asia, which has moved toward economic integration.

Philippines' conspicuous growth

The Nikkei calculates and publishes the daily closing values of the indexes for the 11 countries and regions that make up the Nikkei Asia300 Index. The bar graphs show the growth rates for these indexes over the 10 years from the end of 2005 (the end of 2008 for Vietnam) to the end of 2015, and annual growth rates for nominal gross domestic product over the same period.

The Philippines' index showed the highest growth, increasing twice as fast as the country's GDP. The 20 companies that make up the index include many retailers and companies sensitive to consumer spending. The country was once seen lagging behind other major Southeast Asian countries, but achieved high growth led by domestic demand over the 10 years to 2015. Stock prices and GDP grew more than twofold in nearly all constituent economies of the index, other than the more developed ones, such as South Korea, Taiwan and Singapore, and Malaysia. The latter was hit by declining resources prices. The differences between these economies and that of Japan, whose GDP has fallen over the past 10 years, is clear.

Index and GDP growth rates by country/region

  • Nikkei Asia300
  • GDP
  • Nikkei Stock Average
  • China
  • Hong Kong
  • South Korea
  • Taiwan
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • India
  • Japan

*Growth rates in percent for indexes from the end of 2005 to the end of 2015; nominal GDP growth from 2005 to 2015; growth rates for Vietnam from 2008
*Nominal GDP figures from World Development Indicators (World Bank)
*Taiwan nominal GDP data from Directorate-General of Budget, Accounting and Statistics, Executive Yuan, Taiwan
*Japan nominal GDP from National Accounts of Japan, Cabinet Office; Nikkei Stock Average growth for index growth

Chinese companies take more than half of the top spots in terms of market capitalization

Market capitalization rankings of the constituent companies of the Nikkei Asia300 Index, on a floating stock basis, 11 of the top 30 companies were Chinese. Tencent Holdings, an internet service company, which ranked second, has grown as its smartphone app has gained popularity among middle-class consumers. Apart from Chinese companies, South Korea's Samsung Electronics, whose smartphone business has grown more slowly recently, took the top spot, and big companies based in East Asia, including Taiwan's Hon Hai Precision Industry, which attracted attention in Japan because of its purchase of electronics maker Sharp, ranked highly. Naver, South Korea's largest search portal and the parent company of LINE, came in 30th.

Meanwhile, companies with competitive technology and brand names took the highest places in the "rankings of capable companies" compiled by The Nikkei, based on an analysis of companies' fiscal 2015 earnings in terms of profit growth and other indicators. Companies were ranked based on a composite figure for growth rates in sales and profits, profitability and capital efficiency.

StarHub, a Singaporean telecom company, which topped the list, had an outstanding return on equity, thanks to its highly profitable business model, which provides a package of mobile phone, pay-TV and other services. Tenth-ranked Tata Consultancy Services, an Indian company, is highly competitive in IT services. Vietnam Dairy Products (Vinamilk), ranked 19th, is Vietnam's largest beverage maker and an active exporter.

Note: Market capitalizations are based on floating stocks prices, used to calculate indexes, as of Nov. 28, 2016. The constituents of the Nikkei Asia300 Index do not include three Chinese companies -- Alibaba Group Holding, Baidu and JD.com -- which are listed solely on U.S. markets. The rankings are thus somewhat different from those published by The Nikkei and the Nikkei Asian Review in the past.

Ranking by market capitalization

Ranking by corporate capability

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  • Company
  • Sector
  • Country / region
  • Market capitalization in billions of dollars

Overall, the companies that comprise the Nikkei Asia300 Index have achieved high growth over more than 10 years. Movements in the index will give an indication of whether these companies will continue their steady growth, with Asia remaining an engine for the world economy.