Berkshire Hathaway Boosts Japan with $1.9B Samurai Bonds

10 oct

Berkshire Hathaway (NYSE: BRKa), the investment firm led by Warren Buffett, has raised 281.8 billion yen ($1.9 billion) through a Samurai bond issue, strengthening its position in the Japanese market. This is the company's largest yen bond issue in five years, with maturities ranging from 3 to 30 years. The most significant tranche was the 3-year tranche, raising 155.4 billion yen. The funds will be used for general corporate purposes, reinforcing its expansion strategy in Japan, where it already owns about 9% of the country's top five trading houses.

Berkshire's move underscores its continued interest in Japan, a market that has attracted other international investors thanks to Buffett's optimism. This confidence has propelled the Nikkei 225 index (TSE: NI225) to record highs this year, reflecting growing interest in Japanese stocks, especially in value companies that pay high dividends, such as banks and insurers.

In parallel, Asian bourses rose on Thursday, with markets focused on upcoming U.S. consumer price index (CPI) data, which offer clues on the path of interest rates. Japan's Nikkei 225 (TSE: NI225) rose 0.3%, while Hong Kong's Hang Seng Index (HKEX: HSI) gained 2.5%, boosted by a rally in companies such as Trip.com Group Ltd (HK: 9961), which rose more than 5% following a positive revision to its earnings estimates by Citi.
Despite the optimism in Asian markets, Chinese stocks were volatile due to doubts about the extent of economic stimulus. However, the injection of 500 billion yuan ($70.69 billion) by the People's Bank of China provided some support to local markets.

This week's move back to the support zone of the previous highs could be said that the Japanese index is regaining its tone with the capital injection. The RSI is now at 56.19% which indicates that it is not overbought, so the progression could continue without major inconvenience. The price bell shows that the current price development is above the checkpoint zone at 38,658 points. Therefore, it is clear that the strong zone of the index is located in this area and there could be a recovery of the price to highs in the coming weeks.

Ion Jauregui - Analyst ActivTrades





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