Japan’s benchmark stock index will soon see new members as part of its regular rebalancing process.

Kioxia and Pan Pacific International Holdings will be added to the Nikkei 225 starting in April, according to an announcement by the index’s publisher.

At the same time, battery manufacturer GS Yuasa and electronics firm Casio Computer will be removed from the benchmark.

Strong Momentum for New Entrants

The inclusion of Kioxia and Pan Pacific reflects strong recent performance from both companies.

Kioxia, a memory chip manufacturer backed by Bain Capital, has experienced a remarkable surge since its public listing in December 2024. Its shares have risen more than twelvefold since debuting on the market.

Meanwhile, Pan Pacific International — the parent company of the popular Japanese discount retail chain Don Quijote — has also performed strongly, with its shares gaining roughly 9.8% so far this year.

Impact on the Nikkei Benchmark

Index inclusion often boosts visibility and trading demand for companies as funds that track the benchmark adjust their holdings to reflect the new composition.

The reshuffle comes at a time when Japan’s equity market has experienced heightened volatility. The Nikkei 225 reached record highs earlier in February 2026 before geopolitical tensions in the Middle East dampened investor sentiment.

Market analysts say the addition of fast-growing companies such as Kioxia could help maintain momentum in the benchmark index despite global uncertainties.