This paper discusses the role of the stock exchange as a barometer of the national economy using the example of the TSE in the time interval from 1980 to 2023. The influence of national macroeconomic variables on the movement of the Nikkei 225 stock market index is being examined and analysed. Among the selected national macroeconomic variables are economic activity, short‐term interest rate and inflation. The paper started off with the presentation of the basic starting points of stock exchanges, such as the very concept, roles and types of stock markets, followed by a historical overview of the Japan Exchange Group which includes the Tokyo Stock Exchange (TSE). The research is supported by an analysis of the trend of national macroeconomic variables of economic activity, interest rates and inflation, and their connections and influence on the Nikkei 225 stock market index. The analysis was conducted on annual data and covers the time frame from the beginning of the 1980s to the end of 2022. Pearson's coefficient of linear correlation was used in order to find and explain the connections between macroeconomic variables and the stock market index, as well appropriate hypotheses were to be set to determine the statistical significance of the relationship. The calculation of the coefficient was carried out using Statistica and Microsoft Excel tools. Furthermore, there was a discussion about the influence of expectations, monetary and fiscal policy on the movement of the stock market index, which was supported by examples from articles and an analysis of the movement of the Nikkei 225 index over a period of 40 years.