Advantest’s Nikkei 225 Weight Cut Looms After 15% Rally

A potential cut to Advantest Corp.’s weighting in Japan’s Nikkei 225 Stock Average could drive passive selling as index funds rebalance.

Nikkei Inc. cuts the weighting of stocks exceeding 10% in the Nikkei 225 at periodic reviews, putting Advantest — at 12.8% as of Wednesday per Bloomberg calculations — at risk of an April reduction if it remains above the threshold this month after its shares jumped as much as 15% on strong earnings.