Effects of Macroeconomic Variables, World Gold Prices, World Oil Prices, and Dow Jones Index on Japanese Stock Index Nikkei 225

Abstract

Japan is the second-largest foreign investor in Indonesia and has a Nikkei 225 stock index, which is the oldest stock index in Asia. This study aims to determine the effect of inflation, interest rates, GDP, exchange rates, world gold prices, world oil prices, and Dow Jones index on the Nikkei 225 index. This type of quantitative research with a saturated sampling method (census) is using all data. The research object for the monthly Nikkei 225 index closing price 2006-2016. Data is obtained from the Yahoo Finance website, totaling 132 months. The data analysis technique uses multiple linear regression with IBM SPSS version 23. The results of the study, inflation has no effect because the inflation experienced by Japan is below 2%, Japan's benchmark interest rate has no effect because it only changes four times, the Japanese Yen exchange rate has no effect because investors prefer to invest in Japanese Yen-based investments, Japan's GDP is influential because Japan has experienced an economic recession, world gold prices have no effect because gold as a security asset in investing stocks, world oil prices have no effect because Japan is switching to gas energy, Dow Jones index is influential because America is one of the 5 largest economic cooperation countries with Japan.