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Shares in Japan’s five largest trading houses surged as much as 8 per cent after Warren Buffett signalled Berkshire Hathaway was likely to increase its already substantial stakes in those companies.
The five stocks rose between 4 and 8 per cent in the first half hour of trading in Tokyo on Tuesday. Markets in Japan were closed on Monday for a public holiday.
Mitsubishi Corporation was up about 8 per cent while Mitsui, Marubeni, Sumitomo and Itochu all rose about 5 per cent.
Berkshire disclosed in 2020 it had made a 5 per cent investment in each of the trading houses worth more than $6bn combined. Since then, the market value of all five companies has soared.
The trading houses’ business interests range from commodities to technology start-ups.
They remain the only Japanese sector in which Berkshire has invested despite speculation that it might expand the scope of its portfolio in the country.
The stocks’ resurgence followed the publication of a letter on Saturday to Berkshire shareholders in which Buffett said it had agreed with the five trading houses to relax an earlier ceiling capping its investment at 10 per cent.
“Over time, you will likely see Berkshire’s ownership of all five increase somewhat,” wrote Buffett.
He added that Berkshire was likely to hold its Japanese position for many decades to come and would find “other ways to work productively with the five companies in the future”.
Investors have speculated that Berkshire might use its stakes in the trading houses to give it access to dealmaking in infrastructure and energy, areas in which the US company has significant global interests.
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