Economy
Nikkei to lower Advantest’s weight in Nikkei 225
Index coefficient to be cut in October after stock tops 10% limit Nikkei to lower Advantest's weight in Nikkei 225 from October as stock's index share exceeds 10% cap rule. TOKYO -- Nikkei will reduce the weighting of Advantest in the Nikkei 225 from Oct. 1, applying a cap intended to prevent any single constituent from becoming overly dominant. Based on the shares' July 31 closing price, the reference date for this autumn's periodic review, Advantest accounted for 12.2% of the index. This was above the 10% level that triggers the cap rule introduced in 2022. The Nikkei 225 is calculated using constituent share prices, multiplied by a price adjustment factor, which reflects past capital changes. Nikkei currently applies a factor of 7.2 and will reduce it to 6.4, starting in October. Further adjustments or removal of the cap will be decided in connection with the semiannual reviews following next spring. The capping rule was first applied in the autumn of 2024 to Fast Retailing. It was applied again in the spring of 2025. Advantest was also subject to the rule during the index's spring review this year.
