Japan Exchange and Nikkei to Start Index Focusing on ROE
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Japan Exchange Group Inc., operator of the world’s second-biggest equity market, will create an index with Nikkei Inc. that selects members based on return on equity, in a bid to highlight the nation’s best stocks.
The bourse operator and Nikkei, which also runs the Nikkei 225 Stock Average, will compile the measure from Jan. 6, according to a statement on Japan Exchange’s website. The gauge will have 400 shares, with 386 Tokyo Stock Exchange first section companies, one from the second section, two from the TSE Mothers market and 11 from Jasdaq. Stocks will include Japan Tobacco Inc. and Toyota Motor Corp. as well as Rakuten Inc. and GungHo Online Entertainment Inc., the bourse said.