Good news for nuclear companiesJapanese Stocks Pare Gain From Three-Month Low; Power Companies Advance
ByAkiko Ikeda-Jun 19, 2011 9:49 PM PT
Japanese stocks rose from a three-month low as power companies climbed on signs the government mayallow atomic reactors to be restarted following the worstnuclear accident in 25 years.
Chubu Electric Power Co., ordered last month to shutoperations at its Hamaoka nuclear plant to address safetyconcerns, surged 7.5 percent. Mazda Motor Corp. jumped 3.1percent after the automaker said it will return to profit thisfiscal year and Citigroup raised the automaker’s rating to“hold.” Mitsubishi Corp., Japan’s largest commodities trader,dropped 0.6 percent after oil and copper prices fell.
The Nikkei 225 Stock Average rose 0.3 percent to 9,375.44as of 1:38 p.m. in Tokyo, after Trade Minister Banri Kaieda saidon June 18 that he may let utilities restart nuclear generatorsthat had been shut for routine maintenance. The broader Topixindex advanced 0.4 percent to 808.45. The gauge fell on June 17to its lowest since March 18 amid concern European officialswould fail to agree on a bailout for debt-saddled Greece.
“Restarting the nuclear power plants is good for theutilities and, in the end, good for the economy because it meanswe can avoid power shortages,” said Kenichi Hirano, generalmanager and strategist at Tachibana Securities Co. in Tokyo.“Still, words don’t settle anything by themselves so you can’ttake it granted that this will resolve the issue.”