Japanese Stocks Turn Higher After Reports Of Berkshire Hathaway Interest

Japanese Stocks Turn Higher After Reports Of Berkshire Hathaway Interest by Emily Clark last updated on April 28, 2023

On Tuesday, the listed stocks on the Nikkei index surged higher after reports that Buffett's firm is looking to make investments in Japanese stocks.

The report also talked about Berkshire Hathaway's plan to increase its stake in the top 5 trading houses of Japan. Considering the impact Warren Buffet and his firm had in the investment world, this reaction was only natural!

After the news, the stock of all 5 Japanese trading houses turned higher by 2 - 3%. These trading houses include Itochu Corp, Mitsubishi Corp, Sumitomo Corp, Mitsui & Co, and Marubeni Corp.

According to a local newspaper, Buffett controls a 7.4% stake in the above-mentioned trading firms. In fact, he's even thinking of increasing his stake after visiting Japan.

In addition, Buffett also unveiled his plans to invest in more Japanese public companies. He even went as far as to say that he is proud of his decision to make investments in Japanese trading firms.

Berkshire Plans To Issue Additional Yen Bonds

Another report suggests that Berkshire is also thinking of issuing more yen bonds. And if we look at the Japanese stock market, it appears to be an anomaly.

While the global stock market had a difficult year, Japanese stocks continue to outperform most of them! In addition, a lot's happening in Japan, from easing inflation to a change of leadership at the Bank of Japan!

But the biggest factor which makes Japanese stocks such a good option is the low-interest rates in Japan.

While the rest of the world struggles with high-interest rates, the interest rate in Japan is still at -0.10%!

A negative interest rate like this may not be good for the Yen, but it provides a very good environment for Japanese stocks. Maybe that's why the big investors like Warren Buffet are now also looking at Japan for investments.