Last week, Japan reported a 1.4 percent annualized GDP growth rate for the third quarter, slightly above the media estimate of 1.3 percent. Notably, this represents the seventh straight quarter of Japanese economic expansion, nearly matching an eight quarter run from the second quarter of 1999 through the first quarter of 2001.
Reflecting this environment, FTSE Russell and Nomura Securities Co., Ltd. announced earlier this week that 151 new stocks were added to the Russell/Nomura Total Market Index as part of its annual rebalance, effective 20 November. And, importantly, the total market capitalization of the Index, which captures 98% of the float-adjusted market capitalization of the Japanese equity market, rose 28% from last year's rebalance.
Catherine Yoshimoto, senior product manager, FTSE Russell:
"We certainly saw a rise in the Japan equity market in the last year as reflected by the growth of the Russell/Nomura Total Market Index, which is not unexpected given the solid GDP growth in Japan. Interestingly, in the last year among Japanese stocks, we have seen a shift toward value orientation for the Land Transportation and Retail Trade sectors and a shift toward growth orientation for the Electric Appliances, Chemical and Machinery sectors."
To view a 2016 research paper highlighting key design features of these indexes - Russell/Nomura Japan Equity Indexes: 20 years of excellence - go to the FTSE Russell website.
 Source: FTSE Russell. Data from October 14, 2016 through October 13, 2017. Past performance is no guarantee of future results. Please see the end for important legal disclosures.
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the LSE Group). The LSE Group includes (1) FTSE International Limited (FTSE), (2) Frank Russell Company (Russell), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, FTSE TMX) and (4) MTSNext Limited (MTSNext). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. FTSE, Russell, FTSE Russell, MTS, FTSE TMX, FTSE4Good and ICBand all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
Views expressed by Catherine Yoshimoto of FTSE Russell are as of November 22nd and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.
Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.