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The Nikkei 225 Average has long reigned as the dominant Japanese index, but the Tokyo Stock Exchange's Topix index is quickly strengthening its reputation in status-conscious Japan.
Topix, which includes 1,300 of Japan's largest firms, is increasingly viewed as a better barometer of the Japanese economy than the Nikkei 225, run by the Nikkei newspaper groups.
The Nikkei suffered from the backlash to a poorly handled transition to the "new economy." In April, the index's creators announced plans to replace 30 old-line industrial firms in the Nikkei with 30 newcomers, including several internet and other high-technology firms. The move was seen as too abrupt by the powerful Japanese Ministry of Finance. A subsequent slide of 18% in the Nikkei provided extra ammunition for irate investors and critical market analysts favoring Topix.