In an MSCI ACWI index review, 2 Japanese stocks were excluded and KOKUSAI ELECTRIC was added. The stocks marked for exclusion were JFE Holdings and Seibu Holdings, and the announcement was made on the 12th (early morning on the 13th Japan time).
MSCI announced that it would revise the composition of ACWI, a leading global equity index, by excluding 2 Japanese stocks and adding 1. In this review, JFE Holdings and Seibu Holdings were marked for exclusion, while KOKUSAI ELECTRIC was newly added to the index. The announcement was reportedly made in the early morning of the 13th Japan time.
The 2 excluded stocks will be removed from the index as a result of MSCI's rebalancing, within a group of companies broadly covering Japan's industrial and distribution sectors. Meanwhile, KOKUSAI ELECTRIC is expected to expand the Japanese equity component of ACWI, resulting in changes to its balance with other stocks.
The changes have been noted as potentially affecting comparisons between the Japanese and U.S. markets through ACWI, as well as the holdings of ETFs. In its official announcement, MSCI identified the specific stocks to be excluded and added, along with the effective timing, and investors have reportedly been advised to pay attention to changes in the index composition.
The review is part of MSCI's regular index review process, and there is a view that it could also be linked to developments in other regions and in financial products tracking the index. Future reports are expected to focus on trading activity in the excluded stocks and rebalancing by index-tracking products.