Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a> now makes up 12.51% of the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> weight and there will be multiple levels of capping over the next 3 rebalances.</li>
<li>The passive selling is estimated to be 51.5m shares (JPY 1.3tn; US$8.4bn; 6.1x ADV) in total and will increase the real float of the stock significantly.</li>
<li>
<a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a> has continued to outperform its peers, and the valuation gap is getting wider.</li>
</ul>



Advantest Corp (6857 JP) now makes up 12.51% of the Nikkei 225 (NKY INDEX) weight and there will be multiple levels of capping over the next 3 rebalances.
The passive selling is estimated to be 51.5m shares (JPY 1.3tn; US$8.4bn; 6.1x ADV) in total and will increase the real float of the stock significantly.

Advantest Corp (6857 JP) has continued to outperform its peers, and the valuation gap is getting wider.


Advantest (6857 JP): Triple Capping over the Next Year

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

CEO / Founder, Crea8

Kim-Hwa Lim

CEO / Founder

Make an Impact

Crea8

Crea8 blends AI-driven precision, big data scalability, and rigorous quantitative frameworks with seasoned human insight. By extracting actionable intelligence from vast global datasets, we eliminate emotional bias and deliver optimal risk-adjusted returns. Our hybrid approach uncovers hidden market efficiencies and ensures your capital is dynamically positioned across markets.

Cross Asset Strategy

<ul><li>The strategy seeks to invest in global companies with sustainable competitive advantages.</li><li>By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.</li><li>Previous portfolio returned 7.1% vs. MSCI World (4.2%) – outperformed the benchmark by 2.9%.</li></ul>

The strategy seeks to invest in global companies with sustainable competitive advantages.By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.Previous portfolio returned 7.1% vs. MSCI World (4.2%) – outperformed the benchmark by 2.9%.

Global Competitive Barrier Portfolio (18 Aug 2026)

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> March rebalance ends in 4 weeks. Depending on the index committee discretion, there could be 1-3 changes at the rebalance.</li>
<li>
<a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a>'s index weight is currently above 10% and that will result in capping. <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a> and <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> avoid capping for now.</li>
<li>The capping for <a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a> results in funding inflows for all the index constituents, though the impact tops out at 0.4x ADV.</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) March rebalance ends in 4 weeks. Depending on the index committee discretion, there could be 1-3 changes at the rebalance.

Advantest Corp (6857 JP)'s index weight is currently above 10% and that will result in capping. Fast Retailing (9983 JP) and Softbank Group (9984 JP) avoid capping for now.
The capping for Advantest Corp (6857 JP) results in funding inflows for all the index constituents, though the impact tops out at 0.4x ADV.


Nikkei 225 Index Rebalance Preview (Mar 2026): Potential Adds, Deletes, Capping & Other Changes

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
  <li>Advantest is a dominant force in the Automated Test Equipment (ATE) market, holding a significant global market share in a duopolistic industry structure with its primary competitor, Teradyne.</li>
  <li>The company is a key beneficiary of secular growth trends in the semiconductor industry, particularly the proliferation of Artificial Intelligence (AI), high-performance computing (HPC), and complex system-on-a-chip (SoC) designs, which drive demand for more sophisticated testing solutions.</li>
  <li>While exhibiting a robust growth trajectory and strong profitability, the stock trades at a premium valuation. Investors should also be aware of potential near-term stock price pressure due to index capping rules and the inherent cyclicality of the semiconductor industry.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  Advantest is a dominant force in the Automated Test Equipment (ATE) market, holding a significant global market share in a duopolistic industry structure with its primary competitor, Teradyne.
  The company is a key beneficiary of secular growth trends in the semiconductor industry, particularly the proliferation of Artificial Intelligence (AI), high-performance computing (HPC), and complex system-on-a-chip (SoC) designs, which drive demand for more sophisticated testing solutions.
  While exhibiting a robust growth trajectory and strong profitability, the stock trades at a premium valuation. Investors should also be aware of potential near-term stock price pressure due to index capping rules and the inherent cyclicality of the semiconductor industry.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Advantest Corp (6857 JP) - Nov 2025

Japan

ADVANTEST CORPORATION produces semiconductor testing devices and electronic measuring instruments.  The Company's products include large-scale integration (LSI) test systems, memory test systems, dynamic test handlers, network analyzers, electronic meters, optical testing devices, and signal sources.

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Advantest Corp (6857 JP)

Advantest (6857 JP): Triple Capping over the Next Year

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Brian Freitas

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Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

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The strategy seeks to invest in global companies with sustainable competitive advantages. By adopting a portfolio of stocks instead of individual...

Crea8

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There could 1-3 changes for the NKY in March. Advantest will be capped in March and could be capped in September too. Passives need to trade...

Brian Freitas

Primer: Advantest Corp (6857 JP) - Nov 2025

Advantest is a dominant force in the Automated Test Equipment (ATE) market, holding a significant global market share in a duopolistic industry...

αSK Primers

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