On October 7, 2026, JPX Market Innovation & Research (JPXI) published the results of the first periodic review of TOPIX, the Tokyo Stock Price Index. The review takes effect on October 30. From that date, TOPIX changes from "an index primarily tied to the Prime Market" into an index whose constituents are re-selected every year, on liquidity criteria, from all three market segments: Prime, Standard and Growth.
There are three key points.
- Prime Market no longer means TOPIX. 46 stocks listed on the Standard and Growth markets (excluding transition stocks) become constituents, while Prime Market stocks that fail the criteria are phased out
- The 683 stocks not retained are not removed at once. As "transition stocks," their weights are reduced in eight quarterly steps starting in October 2026, reaching 0% in July 2028. Stocks that meet the continuation criteria at the October 2027 re-evaluation stop at 50%
- The number of constituents goes from 1,636 to 1,669 and then to 986 plus. Market coverage, however, stays almost unchanged (97.4% to 96.4%), and the median trading value of constituents more than triples
The sections below follow the official materials in order.
What changed: the revised TOPIX rules
This review is the "second stage," following the "first stage" that responded to the April 2022 restructuring of TSE market segments and was completed at the end of January 2025. Given that roughly ¥160 trillion (as of June 2026) of assets track TOPIX, JPXI says it will preserve the continuity of the index and carry out the transition in steps.
| Item | Before | After |
|---|---|---|
| Eligible markets | Prime Market (plus constituents at the time of the market restructuring that chose the Standard or Growth market) | Prime, Standard and Growth markets |
| Periodic review | None | Once a year, on the last business day of October (base date: last business day of August) |
| Addition criteria (non-constituents) | — | Annual traded value turnover ratio of 0.2 or more, and within the top 96% by cumulative free-float market capitalization |
| Continuation criteria (constituents) | — | Annual traded value turnover ratio of 0.14 or more, and within the top 97% |
| Non-periodic additions | New listings on the Prime Market and market segment changes (until October 2026) | New listings on any segment whose free-float market cap exceeds the minimum of the top 95% by cumulative ratio (from November 2026) |
The continuation criteria are looser than the addition criteria. This is a "buffer rule" for index stability and investment efficiency, meant to keep stocks near the threshold from moving in and out every year. Non-periodic deletions (such as delistings) and the 10% weight cap per stock are unchanged.
The two measures behind the criteria are defined as follows.
- Annual traded value turnover ratio: the sum of the monthly turnover ratios over the 12 months up to and including the month of the base date. The monthly ratio is "median daily trading value in TSE auction trading × number of business days ÷ free-float market cap on the last business day of the month"
- Cumulative ratio of free-float market cap: stocks that meet the turnover condition and are not designated as securities to be delisted or on special alert are ranked by free-float market cap, and the share is accumulated from the top. In this review, the top 97% corresponded to about ¥42 billion, the top 96% to about ¥61 billion, and the top 95% to about ¥77 billion
The results published on October 7
| Before the review (end of Aug 2026) | After the review (end of Oct 2026) | After the transition (end of Jul 2028) | |
|---|---|---|---|
| Number of stocks | 1,636 | 1,669 (incl. 683 transition stocks) | 986 + stocks retained at re-evaluation |
| Total free-float market cap | ¥775 trillion | ¥778 trillion | ¥766 trillion |
| Market coverage | 97.4% | 97.9% | 96.4% |
| Free-float market cap (median) | ~¥59 billion | ~¥61 billion | ~¥160 billion |
| Daily trading value (median) | ~¥480 million | ~¥500 million | ~¥1.54 billion |
Note: Market coverage is the share of TOPIX constituents in the total free-float market cap of all stocks on the three markets. Free-float market cap and market coverage are estimates based on data as of the last business day of August 2026, reflecting adjustment and transition coefficients. Trading value is the August 2026 average. Future stock counts are estimates that reflect additions and deletions known as of October 7.
The number of stocks falls by about 40%, while market coverage by capitalization barely moves. Most of the stocks phased out have small market caps and trading values, so the median free-float market cap and median daily trading value rise sharply. That is the intent of the design.
35 stocks are newly added (23 Standard, 12 Growth). Examples include McDonald's Holdings Company (Japan), Ltd., Workman, Seria, Yonex and Chiyoda Corporation (all Standard), and freee K.K., Timee and Astroscale Holdings (all Growth). Together with existing constituents, the Standard and Growth market constituents excluding transition stocks total 46.
The character of the index is also largely preserved. In JPXI's figures, the largest change in sector weights is +0.2% for banks and -0.1% for services. The weighted P/E goes from 21.1 to 21.2, the weighted P/B from 1.88 to 1.90, and the weighted dividend yield from 1.85% to 1.83%. By size, the weight of the mega-cap Core30 rises from 42.3% to 44.6%, and the weight of small caps (TOPIX Small) falls from 7.2% to 5.5%.
Transition measures: 683 stocks step down in eight stages
The 683 stocks not retained in the first periodic review are not removed immediately. Their free-float market cap is multiplied by a "transition coefficient," which is cut by 12.5 percentage points each quarter.
| Applied | Oct 2026 | Jan 2027 | Apr | Jul | Oct | Jan 2028 | Apr | Jul |
|---|---|---|---|---|---|---|---|---|
| Coefficient (not meeting continuation criteria at re-evaluation) | 87.5% | 75.0% | 62.5% | 50.0% | 37.5% | 25.0% | 12.5% | 0% |
| Coefficient (meeting continuation criteria at re-evaluation) | 87.5% | 75.0% | 62.5% | 50.0% | 50.0% | 50.0% | 50.0% | 50.0% |
The key date is the re-evaluation in October 2027. Transition stocks that meet the continuation criteria at that point (annual turnover ratio of 0.14 or more, within the top 97% by cumulative ratio) stop at 50% and remain constituents. JPXI describes this as a mechanism to "reflect listed companies' efforts to improve management." Put the other way, for transition stocks, liquidity and market cap over that year decide whether they stay in the index.
Counting from the constituent list, the 683 transition stocks consist of 572 on the Prime Market, 110 on the Standard Market and 1 on the Growth Market. Being listed on the Prime Market is no longer a condition for being in TOPIX.
Size-based index changes and the new "TOPIX Next-tier"
On the same day, October 30, the size-based indices (the TOPIX New Index Series) are also rebalanced in their periodic selection.
- TOPIX Core30: in — Fujikura, Panasonic Holdings, Murata Manufacturing, Sumitomo Corporation / out — Seven & i Holdings, Daiichi Sankyo, Daikin Industries, Honda Motor, Sony Financial Group Inc.
- TOPIX100 (Core30 + Large70): newly in — INPEX, Kioxia Holdings, Resonac Holdings, Ibiden, JX Advanced Metals, IHI / out — LY Corporation, Subaru, Unicharm, West Japan Railway, Sony Financial Group
Four of the five stocks leaving Core30 move to Large70 and stay in TOPIX100, while Sony Financial Group moves to Mid400.
In the size-based selection, transition stocks are ranked on market cap after applying the transition coefficient.
A new index, TOPIX Next-tier, also starts on October 30. It consists of stocks with a certain level of liquidity that are not selected for TOPIX (including transition stocks). As of October 7, it was scheduled to have 704 constituents.
The timetable ahead
| When | What |
|---|---|
| Oct 30, 2026 (Fri) | First periodic review: 35 stocks added, 87.5% transition coefficient applied, TOPIX Next-tier launched |
| From Nov 2026 | New listings on any segment can be added to TOPIX on a non-periodic basis if they meet the criteria |
| Jan, Apr and Jul 2027 | Transition coefficient cut to 75.0%, then 62.5%, then 50.0% |
| Oct 2027 | Re-evaluation of transition stocks; those meeting the continuation criteria stop at 50% |
| Jan, Apr and Jul 2028 | Remaining transition stocks cut to 25.0%, then 12.5%, then 0% |
| Oct 2028 | Second periodic review, then every October |
What investors may want to check
- Check how your holdings and watchlist stocks are treated, using the primary source. JPXI's "Selection results of the first TOPIX periodic review and list of constituents" lists new additions, transition stocks and constituents, with their market segments
- Distinguish "listed on the Prime Market" from "TOPIX constituent." From now on, some Prime Market stocks will be outside TOPIX and some Standard and Growth stocks will be inside it. If you use market segment as a screening or comparison condition, that assumption needs revisiting
- Know the re-evaluation criteria for October 2027. Whether a transition stock stays in the index depends on concrete thresholds: an annual turnover ratio of 0.14 or more, and within the top 97% by cumulative ratio (about ¥42 billion at this review's level)
- Watch for stocks whose size category changes. Metrics and comparisons that reference Core30, Large70, Mid400 and other categories will cover different stocks from October 30
Sources
- JPX, "Periodic review of constituents of TOPIX and other indices" (October 7, 2026; Japanese) https://www.jpx.co.jp/news/6030/20261007-01.html
- JPXI, "Selection results of the first TOPIX periodic review (effective October 30, 2026) and list of constituents" (Japanese) https://www.jpx.co.jp/news/6030/t13vrt00000262wd-att/topix_j.pdf
- JPXI, "Results of the first periodic review, October 2026" (appendix; Japanese) https://www.jpx.co.jp/markets/indices/topix/tvdivq00000030ne-att/appendix_j.pdf
- JPXI, "TOPIX New Index Series periodic selection results and constituents" (Japanese) https://www.jpx.co.jp/markets/indices/topix/tvdivq00000030ne-att/mei2_12_size.pdf
- JPXI, "TOPIX Next-tier constituents" (Japanese) https://www.jpx.co.jp/news/6030/t13vrt00000262wd-att/mei2_39_topixnext_rev.pdf
- JPX, "Revisions to TOPIX" (Japanese) https://www.jpx.co.jp/markets/indices/revisions-indices/index.html
This column was prepared by IR Tracker based on materials published by Japan Exchange Group (JPX Market Innovation & Research). Index constituents and figures are as of publication and may change with the re-evaluation, non-periodic additions and other events. This is not a recommendation to invest in any specific security. Please make investment decisions at your own responsibility and consult professionals as needed.