Post by : Shakul

Japan’s benchmark stock index, the Nikkei 225, will undergo a significant reshuffle as part of its regular annual review, with Kioxia Holdings and Pan Pacific International Holdings set to be added to the index from April 1, according to an announcement made by Nikkei Inc.

The inclusion of Kioxia, a major Japanese semiconductor and memory chip manufacturer, reflects the company’s strong market liquidity and its growing influence in the technology sector. Meanwhile, Pan Pacific International Holdings, the operator of the popular Don Quijote discount store chain, is being added to improve sector balance within the index.

At the same time, two long-standing companies — GS Yuasa and Casio Computer — will be removed from the Nikkei 225. The changes are part of the index’s periodic review process aimed at maintaining a balanced representation of Japan’s economy and major industries.

Another change involves Hino Motors, which will be removed from the index after it is delisted at the end of March following its merger with Mitsubishi Fuso Truck and Bus. The two companies are combining operations under a newly created holding company, Archion, which will replace Hino in the index when it is listed on April 1.

Nikkei officials said that during the transition period around Hino’s delisting, the index will temporarily use the company’s final recorded share price to maintain calculation stability until the new holding company begins trading.

In addition to the main Nikkei 225 index, the changes will also affect several related indices focused on sustainability, shareholder returns and dividend performance. Companies removed from the main index will also be dropped from some of these thematic indices until the next periodic review determines replacement constituents.

The Nikkei 225 is widely regarded as one of the most important indicators of the performance of Japan’s stock market and broader economy. Adjustments to its composition are closely watched by investors, as they can influence market sentiment and investment flows across Japanese equities.

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