Under the TOPIX review, stocks from the Standard and Growth markets will become eligible for inclusion, while the number of constituents is expected to fall substantially from approximately 1,650 currently to around 1,000. The first reshuffle will take place in October 2026, followed by phased reassessments and regular reviews.
TOPIX, Japan's flagship stock index, will undergo a review under which stocks from the Standard and Growth markets will become eligible for inclusion from October. Constituents will be selected based on market liquidity, and the number of constituents is expected to fall substantially from approximately 1,650 currently to around 1,000.
Under the new inclusion criteria, stocks with large free-float market capitalizations will be included in TOPIX regardless of market segment. Existing constituents will also be assessed for continued inclusion or removal based on the size of their free-float market capitalization. The first reshuffle is scheduled for October 2026, followed by a reassessment in October 2027 and regular reshuffles from October 2028 onward.
The cumulative ratio of free-float market capitalization will be given importance as a new indicator, with inclusion guided by a top-96% threshold and continued inclusion by a top-97% threshold. Two liquidity-focused criteria will be introduced, increasing the likelihood that all market segments will be eligible for inclusion in TOPIX.
Many market participants have expressed support for the objective of improving market representativeness and functionality while maintaining continuity in the index.