Key facts
- T&D Holdings and Furukawa Electric will be added to the JPX-Nikkei Index 400.
- KDDI and Asahi Group Holdings will be removed from the JPX-Nikkei Index 400.
- The JPX-Nikkei Index 400 will see 45 additions and 39 deletions.
- The JPX-Nikkei Mid and Small Cap Index will add 49 stocks and remove 43.
- The index revisions will take effect on August 31.
Nikkei and JPX Market Innovation & Research announced on Friday that they will revise the components of the JPX-Nikkei Index 400 and the JPX-Nikkei Mid and Small Cap Index as part of their annual review. The changes, which take effect on August 31, will see 45 stocks added to the JPX-Nikkei 400, including T&D Holdings and Furukawa Electric. Concurrently, 39 stocks will be removed from the index, with KDDI and Asahi Group Holdings among those being dropped.
The JPX-Nikkei Mid and Small Cap Index will also undergo revisions, adding 49 stocks and removing 43. The index providers noted that the number of deletions is smaller than additions in both indexes because some constituents were already excluded from the previous annual reshuffle.
The JPX-Nikkei Index 400 aims to comprise companies with high investor appeal, meeting global investment standards for efficient capital use and investor-focused management. Its objective is to promote the appeal of Japanese corporations globally and encourage improvements in corporate value to revitalize the Japanese stock market. Constituents are selected based on screening criteria including financial health and market liquidity, followed by scoring on quantitative indicators like ROE and cumulative operating profit, and qualitative factors such as board independence and English disclosure.