Nintendo Enters Nikkei Index on Tokyo Stock Exchange

Japanese video game maker Nintendo will be part of the Nikkei index, the main stock index on the Tokyo stock exchange, from October 1.

In addition to Nintendo, two other major technology groups, Keyence and Murata, will also be on the Nikkei.

The three newcomers are linked to a recent reform of the stock index parameters. The calculation methods now stipulate that each stock entering the index must not represent more than 1 percent of the total weight of the index in order not to unbalance the index.

According to several Japanese stock market experts, the fact that a worldwide known group such as Nintendo was not in the Nikkei was an anomaly that had to be rectified.

Including Nintendo, Keyence and Murata in the Nikkei 225 will help the index better represent the Japanese economy, Tomoichiro Kubota, a market analyst, told Bloomberg.

The three new shares will replace Nisshinbo Holdings (equipment and products for various industrial sectors), Toyo Seikan (plastic packaging) and Sky Perfect JSAT (communications and audiovisual services via satellites).