S&P DJI and JPXI Announce Index for TSE Prime Stocks

This index aims to improve access to Japan’s evolving equity market for global investors, reflecting the rising international interest in Japanese equities.

The Prime Market, one of three restructured TSE segments introduced in 2022, concentrates on firms with strong market capitalisations and corporate governance standards. It is said to align with long-term growth objectives and foster transparent dialogue with investors. 

The new index includes 250 stocks from a universe of over 1,500 companies and covers around 84% of the Prime Market’s float-adjusted market capitalisation. It is designed to mirror the sector weightings of the broader Prime Market universe.

Dan Draper, CEO of S&P Dow Jones Indices, stated: “S&P Dow Jones Indices is pleased to continue innovating and growing its cobranded index offerings with JPXI. S&P DJI and Japan Exchange Group, Inc. (“JPX”) have a longstanding partnership since 1999, and share a commitment to advance market education, participation, and transparency in the Asia-Pacific and global markets through our family of independently governed and rules-based S&P/JPX indices.”

Miyahara Koichiro, President & CEO of JPXI, added: “JPX Market Innovation & Research, Inc. is pleased to offer new investment opportunities in Japanese equities to overseas investors through this index which is based on the Prime Market – the market oriented to companies which center their business on constructive dialogue with global investors – thanks to our partnership with S&P DJI which has extensive experience internationally.”

With quarterly rebalancing, the index ensures its constituents remain reflective of market trends, offering institutional investors a transparent and diversified entry point into Japan’s equity landscape.