Bright new Japan firms recovering

The biggest event of the last month was the unexpected reshuffle of the Nikkei 225, forcing ¥2.3 trillion (£13.5bn) of index and arbitrage funds to change their portfolios in the run up to the Easter weekend. Thirty new companies entered the index, mainly well known names like NTT DoCoMo, Tokyo Electron, Seven-Eleven, replacing a group of less well recognised, mainly industrial companies such as Shimura Kako and Mitsui Mining. The additions represented 42% of the new Nikkei 225, whereas the deleted only accounted for 4%. This resulted in some erratic moves, as deleted companies' share pri...