The Tokyo Stock Exchange and Nikkei media company will start to calculate a new stock index from January 2014 that is supposed to select the best-performing Japanese companies, Agence France-Press reported on November 7.
The new index is termed JPX-Nikkei Index 400. This index is based on quantitative criteria such as return on equity, operating profit, and market value, as well as qualitative aspects such as having at least two independent outside directors and providing earnings disclosure according to the international standards.
The news agency notes that about 150 companies correspond to the new index criteria. The gauge will comprise such major companies as Toyota and several start-ups including GungHo Online Entertainment, a smartphone game developer.
Currently, Nikkei 225 is the most meaningful and popular index among investors; it is determined by means of analyzing quotes of the most actively traded Japanese companies. It has grown by 38% starting this year. In line with the American S&P 500 and Dow Jones, and the British FTSE 100, Nikkei also serves as an indicator of the world economy state.
