Nikkei and JPX Market Innovation & Research announced on Friday that the JPX-Nikkei Index 400 and the JPX-Nikkei Mid and Small Cap Index will undergo their annual component revisions. As part of this reshuffle, the JPX-Nikkei 400 will add 45 stocks, including T&D Holdings and Furukawa Electric, while removing 39 stocks such as KDDI and Asahi Group Holdings [1]. The JPX-Nikkei Mid and Small Cap Index will see 49 additions and 43 deletions [1].
The number of additions in both indexes exceeds the number of deletions because some constituents had already been excluded since the previous annual reshuffle [1]. These changes are scheduled to take effect with the calculation on August 31, and the annual reviews for both indexes are conducted at the end of August each year [1].
The inclusion of T&D Holdings and Furukawa Electric in the JPX-Nikkei 400, as well as the removal of notable companies like KDDI and Asahi Group Holdings, may influence investor sentiment and portfolio adjustments, as index changes often prompt rebalancing by funds tracking these benchmarks [1].
CONCLUSION
The annual reshuffle of the JPX-Nikkei 400 and Mid and Small Cap Index introduces significant changes, with more additions than deletions and notable companies entering and exiting the indexes. These adjustments, effective August 31, could prompt market activity as investors and funds respond to the new index compositions.