[Stock Market Feature] New TOPIX review: Focus on undervalued stocks among additions and those slated for removal, with hopes of re-rating

A review policy for the new TOPIX has been presented, prompting discussion of the outlook for undervalued stocks based on the combination of current constituents and stocks slated for exclusion. Market participants are discussing the possibility of constituent changes and the associated flow of funds between sectors.

There is a view that, as momentum builds for re-rating following the review, valuations of index constituents as undervalued or overvalued stocks could be reassessed over the long term. Investors are monitoring the specific timing of constituent changes and the performance of the stocks concerned.