news

financial news agency, october 1 (editor bian chun)according to media reports on tuesday, the company run by "stock god" warren buffettberkshire hathaway is planning a second yen bond issuance this year。

the news triggered market speculationberkshire looking to increase exposure to japanese stocks。

berkshire has hired bofa securities and mizuho securities to issue senior unsecured bonds denominated in yen, the report said.

berkshire has been issuing japanese yen bonds regularly since 2019, with the last issuance of japanese yen bonds being in april. at that time, berkshire raised a total of 263.3 billion yen (approximately us$1.71 billion) through the issuance of japanese yen bonds, which was the second largest transaction among the eight japanese yen bond issuances in the company’s history, second only to the first in 2019 430 billion yen in bond issuance.

japanese stocks are expected to gain support again

berkshire's capital raising plans are closely watched by stock market investors because the company's purchase of shares in japan's five largest trading companies earlier this year helped push the nikkei 225 index to a record high.

in february this year, berkshire mentioned in its annual shareholder letter that the company provided most of the funds for investing in japanese companies through the issuance of japanese yen bonds.

"there is still plenty of room for berkshire to increase its holdings in trading companies," said takehiko masuzawa, head of japan equity trading at phillip securities.

for japanese stocks as a whole, he noted, "this is good news for those who want to buy, and it will give them the boost they need."

in august 2020, berkshire announced for the first time that it already holds 5% of the shares of japan's five major trading companies (itochu, marubeni, mitsubishi corporation, mitsui & co., and sumitomo corporation). since then, the company has increased its stake in the five major trading companies several times. in february this year, buffett revealed that berkshire already holds about 9% of the shares of the five major trading companies. berkshire has stated that it hopes to eventually own 9.9% of each of the five major trading companies.

affected by the above news, japanese trading company stocks rose on tuesday, with the index tracking the sector rising as much as 2.8%.itochu corporation's stock price once rose 3.8%, and mitsui & co.'s stock price once rose 4.2%.

at the same time,japanese stocks also received a boost, as of the close, the nikkei 225 index closed up 1.93% at 38651.97 points; japan's topix index rose 1.69% at 2690.78 points.

it is worth noting that after shigeru ishiba won the leadership of the liberal democratic party of japan, the japanese stock market has been under pressure in recent days, with the nikkei 225 index closing down 4.8% on monday. as ishiba supports the bank of japan's gradual transition away from ultra-low interest rates, the market has renewed its bets on the possibility of the bank of japan raising interest rates.

however, the minutes of the september monetary policy meeting released by the bank of japan on tuesday morning showed that the bank is still cautious about raising interest rates.

in the context of the global "interest rate cut wave", the normal path of interest rates of the bank of japan has attracted much attention. the unexpected interest rate hike by the bank of japan at the end of july triggered a large-scale liquidation of global yen carry trades, which in turn led to a "black monday" for global stock markets in early august.