Two major Japanese companies are joining the country’s most famous stock market index. The publisher of the Nikkei 225 announced on Thursday that memory chipmaker Kioxia and Pan Pacific International Holdings will officially become part of the benchmark index starting in April.
This change is part of the Nikkei’s regular review process, where it updates the list of companies to better reflect the current economy. To make room for the new additions, the index will remove two older tech names: battery manufacturer GS Yuasa and the well-known calculator maker Casio Computer.
Pan Pacific International Holdings might not be a household name globally, but its main business certainly is in Japan. The company owns and operates Don Quijote, the massive and wildly popular discount retail chain. The addition of this retail giant brings a strong consumer focus to the index. Pan Pacific has enjoyed a solid year on the market, with its stock price rising nearly 10% since January.
The other new addition, Kioxia, represents a much newer market force. Backed by the investment firm Bain Capital, Kioxia focuses on building the memory chips that power modern electronics. The company has experienced explosive growth recently. Since it first went public in December 2024, its stock price has multiplied by more than 12 times.
Market watchers expect these two fast-growing companies to inject fresh energy into the Nikkei. The index had an incredible run earlier this year, hitting all-time record highs in February. However, that momentum slowed down recently as investors grew nervous about escalating conflicts in the Middle East.
By bringing in a booming tech firm like Kioxia and a retail powerhouse like the parent of Don Quijote, the Nikkei publishers hope to keep the index relevant and attractive to investors looking for growth in the Japanese market.
