S&P and Tokyo Stock Exchange expand sharia family in Japan

S&P and Tokyo Stock Exchange have jointly launched a new Japanese sharia equity index, the S&P/Topix 150 Shariah, which is designed to optimise exposure to leading companies in the leading industries of the Japanese economy.

The index includes 79 Japan-traded stocks selected from the S&P/Topix 150 universe in compliance with Islamic law. Major companies in the index comprise Sony, Nintendo, Toyota, Canon and Honda Motor.

“Since Japan represents approximately 10% of the world’s market capitalisation, Japanese equities, when combined with other major markets, forms a logical core to a sharia portfolio,” says Bob Shakotko, managing director of index services at S&P.

The index is the Japan component of the S&P Global 1200