Japan's TOPIX Overhaul Removes 683 Stocks and Opens the Index to Smaller Companies

What changed

Japan Exchange Group published its periodic review of the TOPIX index on 7 October 2026. Constituents are now judged on annual trading value and on the free-float market value of their shares. Stocks in the Standard and Growth markets, not only the Prime market, are eligible for inclusion.

The scale of removals

The review flagged 683 companies that fail the new liquidity and free-float tests. Their weightings will be reduced gradually through 2028 rather than removed at once. Companies that meet the criteria at a re-evaluation in October 2027 can stop that process.

Why global investors are watching

TOPIX is large, with a market value of about JPY 160 trillion as of June 2026, and many funds track it passively. Index funds will have to sell the shares of removed companies, and companies that meet the criteria may attract steady passive buying. Analysts expect the index to shrink from about 1,669 members to around 986 by mid-2028.

What it means for listed companies

Companies that want to stay in the index will need to increase liquidity and market value. Smaller listed companies may gain more attention from investors if they are included. For more on markets and listings, see our finance section and business coverage.

Source: Japan Exchange Group, TOPIX periodic review and index guidebook (published 7 October 2026).