Japan’s Shares Advance as Berkshire Boosts Trading House Stakes
Japanese stocks rose, with the Topix hitting its highest level since Jan. 31. Trading houses lifted the market after Warren Buffett’s Berkshire Hathaway increased its stakes.
The Topix Index rose 1.3% to 2,783.56 at market close, gaining for a fifth day, the longest rally this year.
Out of 1,692 stocks in the index, 1,313 rose and 317 fell, while 62 were unchanged.
The Nikkei advanced 1.2% to 37,845.42.
The stock of Japan’s five major trading companies rallied, with Mitsubishi Corp. and Marubeni both adding more than 3%. Berkshire has boosted its stake to an average of 9.3%, and has scope to further increase its holdings.
With the endorsement, “value-oriented Japanese stocks are headed for another rise,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Asset Management. “This is a good sign for the nation’s shares.”
Lenders and insurers were among the biggest contributors to the Topix’s rise, with the banks gauge reaching the highest level since 2007. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose more than 2%, while the insurer Tokio Marine Holdings jumped more than 5%.
“The key for Japanese stocks is if Berkshire buys other sectors,” said Chisa Kobayashi, Japan equity strategist at UBS SuMi TRUST Wealth Management. “Should they expand their investment to other names, that would be a turning point for the nation’s stocks” and fuel gains, she said.
Value stocks like financials and real estates may fall within Berkshire’s investment scope, Kobayashi said.
Source : Bloomberg
