Japan Exchange Group (JPX) unveiled the biggest-ever reshuffle of the Topix on Wednesday, a revamp that shrinks one of Asia’s broadest major equity benchmarks and intensifies pressure on companies in Japan to boost their market appeal. There were 683 companies earmarked for removal under tougher inclusion rules, according to JPX’s announcement. Those slated for gradual removal include Medley and Ichiyoshi Securities Co.
Among the 35 stocks that will be added are McDonald’s Holdings Co. The changes will begin to take effect on Oct. 30. The changes are the second stage of a multiyear effort by the group, which operates the Tokyo Stock Exchange, to make the Topix more investable.
The benchmark has long stood out among major global indexes for its large number of constituents, including hundreds of relatively illiquid small-cap companies.
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