Nikkei to launch new index tracking major Japanese bank stocks

TOKYO -- Nikkei will launch the Nikkei Bank Stock Top 10 Index on Feb. 2, focusing on 10 leading bank stocks to capture investor demand in Japan's new positive interest rate environment.

The index comprises the 10 largest bank stocks by market capitalization listed on the Tokyo Stock Exchange Prime Market. It is weighted by market capitalization, and the three megabanks, namely Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group, will initially account for 75% of the index. Nikkei will review constituents every November.

As Japan shifts into a higher interest rate environment, investors have grown more attentive to improvements in bank net interest margins. Large banks, in particular, are seen as prime beneficiaries. Financial products tracking the new index are expected to draw strong investor interest.

Constituents at the start of this new tabulation are as follows:

Shizuoka Financial Group, Rakuten Bank, Japan Post Bank, Yokohama Financial Group, Mitsubishi UFJ Financial Group, Resona Holdings, Sumitomo Mitsui Trust Group, Sumitomo Mitsui Financial Group, Chiba Bank, Mizuho Financial Group.

For more details, please visit the Nikkei indexes website.