Japan stocks – circuit breaker triggered for Topix

A stock index circuit breaker is a mechanism used in stock markets to temporarily halt trading when an index experiences a significant drop in value. The purpose of this system is to prevent panic selling and allow time for investors to process information and make rational decisions.

• circuit breaker triggered for Topix
• also for government bond futures

ps. spot FX don’t have no stinkin’ circuit breakers 😉

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TOPIX is the Tokyo Price Index

• covers all domestic companies listed in the First Section of the Tokyo Stock Exchange (TSE)
• designed to track the overall trend of the Japanese stock market
• includes over 2,000 companies
• a free-float adjusted market capitalization-weighted index (only shares available for trading are considered in its calculations​)

Nikkei 225

• a price-weighted index of the top 225 blue-chip companies (TOPIX provides a broader and more comprehensive measure of the market)

This article was written by Eamonn Sheridan at www.forexlive.com.