Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>Yesterday, the Nikkei Index Committee announced the results of the March 2026 review of the Nikkei 225 Average. We got the two ADDs right, but not the two DELETEs.</li>
<li>The choice of the DELETEs appear to have solidified a practice which informs going forward. Expect more Tech deletions.</li>
<li>Kioxia (285A) IN, Pan Pacific International HD (7532) IN. GS Yuasa (6674) and Casio (6952) OUT. Advantest capped. US$1.2bn Reverse Funding. And crowded end-March flows.</li>
</ul>


Yesterday, the Nikkei Index Committee announced the results of the March 2026 review of the Nikkei 225 Average. We got the two ADDs right, but not the two DELETEs.
The choice of the DELETEs appear to have solidified a practice which informs going forward. Expect more Tech deletions.
Kioxia (285A) IN, Pan Pacific International HD (7532) IN. GS Yuasa (6674) and Casio (6952) OUT. Advantest capped. US$1.2bn Reverse Funding. And crowded end-March flows.


[Quiddity Index] Nikkei 225 Mar-2026 Rebal: Kioxia, PPIH IN, Casio GS Yuasa OUT. Big End-Mar Flows.

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kioxia-holdings-corp" target="_blank" data-smartkarma-citation="entities:29243:1" rel="noopener">Kioxia Holdings (285A JP)</a> and <a href="https://www.smartkarma.com/entities/pan-pacific-international-holdings-corporation" target="_blank" data-smartkarma-citation="entities:13475:1" rel="noopener">Pan Pacific International (7532 JP)</a> will replace <a href="https://www.smartkarma.com/entities/gs-yuasa-corp" target="_blank" data-smartkarma-citation="entities:8298:1" rel="noopener">Gs Yuasa (6674 JP)</a> and <a href="https://www.smartkarma.com/entities/casio-computer-co-ltd" target="_blank" data-smartkarma-citation="entities:18338:1" rel="noopener">Casio Computer (6952 JP)</a> in the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 INDEX</a> at the March rebalance.</li>
<li>The index committee finally appears to be restoring sector balance with an extra deletion from the overweight Technology sector and an inclusion from the underweight Consumer Goods sector.</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 capping will result in big inflows to the other index constituents. At current levels, the stock will be capped again at the September rebalance. </li>
</ul>



Kioxia Holdings (285A JP) and Pan Pacific International (7532 JP) will replace Gs Yuasa (6674 JP) and Casio Computer (6952 JP) in the Nikkei 225 INDEX at the March rebalance.
The index committee finally appears to be restoring sector balance with an extra deletion from the overweight Technology sector and an inclusion from the underweight Consumer Goods sector.

Advantest Corp (6857 JP)'s capping will result in big inflows to the other index constituents. At current levels, the stock will be capped again at the September rebalance. 


Nikkei 225 Index Rebalance: Kioxia, Pan Pacific IN; GS Yuasa, Casio Computer OUT

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Oasis Management disclosed a 5.2% stake, increasing pressure on Casio to improve capital efficiency and strategic clarity.</li>
<li>City Index disclosed a 5.1% stake, signalling intent to drive value at Nittoku via capital return and improved governance.</li>
<li>3D Investment continue to add to Square Enix position. 3D and Dalton likely to target weak margins, bloated cash, and capital inefficiency - lots to work with.</li>
</ul>


Oasis Management disclosed a 5.2% stake, increasing pressure on Casio to improve capital efficiency and strategic clarity.
City Index disclosed a 5.1% stake, signalling intent to drive value at Nittoku via capital return and improved governance.
3D Investment continue to add to Square Enix position. 3D and Dalton likely to target weak margins, bloated cash, and capital inefficiency - lots to work with.


Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>AI lower with the US looking to impose global AI chip sales permits, although memory rallied in a general rotation to laggards.</li>
<li>Broadcom CEO throwing cold water on DC optical connectivity 'scale-up', sending Corning, Lumentum and Coherent lower setting a dour tone for JP cable plays.</li>
<li>Kioxia and PPIH make it into the NKY225, which Advantest gets capped as expected. Small surprise for Kioxia, but ADV is low for all.</li>
</ul>


AI lower with the US looking to impose global AI chip sales permits, although memory rallied in a general rotation to laggards.
Broadcom CEO throwing cold water on DC optical connectivity 'scale-up', sending Corning, Lumentum and Coherent lower setting a dour tone for JP cable plays.
Kioxia and PPIH make it into the NKY225, which Advantest gets capped as expected. Small surprise for Kioxia, but ADV is low for all.


Japan Morning Connection: Oil Spike Starting to Bite with Airlines Tumbling on the Outlook for Fuel

<ul>
<li>Prime Minister Sanae Takaichi, Japan's first female leader since taking office in October 2025, dissolved the Lower House on January 23, triggering a snap general election on February 8</li>
<li>Positions the election as a referendum on her leadership and reflationary agenda.</li>
<li>A two-year suspension of the 8% consumption tax on food and beverages, have raised concerns over fiscal sustainability</li>
</ul>


Prime Minister Sanae Takaichi, Japan's first female leader since taking office in October 2025, dissolved the Lower House on January 23, triggering a snap general election on February 8
Positions the election as a referendum on her leadership and reflationary agenda.
A two-year suspension of the 8% consumption tax on food and beverages, have raised concerns over fiscal sustainability


Japan Strategy Weekly | Reflationary Push Amid Market Tensions

Japan

CASIO COMPUTER CO., LTD. manufactures various consumer electronics such as calculators, electronic dictionaries, digital cameras, and watches.  The Company also makes mobile phone sets, office computers, and electronic musical instruments.  Casio Computer exports its products to North America, Europe, and Asia.

Price Gauge
52-week Range	0.00 - 0.00
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Casio Computer (6952 JP)

[Quiddity Index] Nikkei 225 Mar-2026 Rebal: Kioxia, PPIH IN, Casio GS Yuasa OUT. Big End-Mar Flows.

The Nikkei 225 Rebal is today at the close. Since the announcement of the March review names, Kioxia is down 1+% to yesterday's close, but saw a...

Travis Lundy

Nikkei 225 Index Rebalance: Kioxia, Pan Pacific IN; GS Yuasa, Casio Computer OUT

The Nikkei225 March rebalance will be executed at the close today. The adds have started to trade lower and the deletes are trading higher since...

Brian Freitas

Japan Activism Briefs | Casio, Nittoku

Investors pressure Casio, Nittoku, and Square Enix to improve capital efficiency and drive value through strategic changes.

Mark Chadwick

Japan Morning Connection: Oil Spike Starting to Bite with Airlines Tumbling on the Outlook for Fuel

Shippers were lower globally after a slightly better day in Asia yesterday. Big drops for US airlines. Continues to look good for long 9202 ANA vs...

Andrew Jackson

Japan Strategy Weekly | Reflationary Push Amid Market Tensions

Japan's first female Prime Minister calls snap election, framing it as a referendum on her leadership and economic policies, including a...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Quiddity Index] Nikkei 225 Mar-2026 Rebal: Kioxia, PPIH IN, Casio GS Yuasa OUT. Big End-Mar Flows.

The Nikkei 225 Rebal is today at the close. Since the announcement of the March review names, Kioxia is down 1+% to yesterday's close, but saw a...

Travis Lundy

Nikkei 225 Index Rebalance: Kioxia, Pan Pacific IN; GS Yuasa, Casio Computer OUT

The Nikkei225 March rebalance will be executed at the close today. The adds have started to trade lower and the deletes are trading higher since...

Brian Freitas

Japan Activism Briefs | Casio, Nittoku

​Investors pressure Casio, Nittoku, and Square Enix to improve capital efficiency and drive value through strategic changes.

Mark Chadwick

Japan Morning Connection: Oil Spike Starting to Bite with Airlines Tumbling on the Outlook for Fuel

Shippers were lower globally after a slightly better day in Asia yesterday. Big drops for US airlines. Continues to look good for long 9202 ANA vs...

Andrew Jackson

Japan Strategy Weekly | Reflationary Push Amid Market Tensions

​Japan's first female Prime Minister calls snap election, framing it as a referendum on her leadership and economic policies, including a...

Mark Chadwick

Investors pressure Casio, Nittoku, and Square Enix to improve capital efficiency and drive value through strategic changes.

Japan's first female Prime Minister calls snap election, framing it as a referendum on her leadership and economic policies, including a...