Japan’s largest trading houses saw their shares surge after US billionaire Warren Buffett’s conglomerate Berkshire Hathaway increased its stake in five major firms. As of 9:09 a.m. Tokyo time, Mitsubishi Corp., Marubeni Corp., Mitsui & Co., Itochu Corp., and Sumitomo Corp. climbed at least 4% each.
The move is seen as a sign that Buffett still has faith in Japanese shares, which have been correcting since last year. Analysts believe the increase in Berkshire’s holdings across these stocks will support the sector’s recovery. A gauge of Japan’s wholesale trading sector rose 7%, compared to a benchmark index’s 0.4% gain.
Berkshire’s CEO has agreed with the trading houses to “moderately” relax its 10% stake limit on Buffett’s holdings in Japanese companies. Analysts will be watching closely for news on Berkshire’s yen bond issuance, which has been funding its investments in Japan.
Buffett’s moves aim to support Japanese stocks, which are seen as relatively cheap compared to other markets. The surge in trading firm shares is a positive sign for the country’s economy and investors looking at Asian markets.
Source: https://finance.yahoo.com/news/japanese-trading-house-shares-rise-001415327.html