Topix index constituents to shrink about 40% to 986 from late October

This is a structural shift in how Japan's flagship equity benchmark is built: liquidity and free float, not listing venue, now decide inclusion. The immediate effect falls on the roughly 683 stocks losing eligibility, which sit outside most passive mandates and could see demand from index-tracking money fade gradually rather than at once. The phased exit through 2028 limits the shock, but the open question is whether trading activity and free float keep concentrating in the surviving names, and whether the newly added Standard and Growth constituents hold their place.