All articles tagged with #japanese market
The Nintendo Switch 2 has become the fastest-selling console in Japan, with nearly 948,000 units sold at launch, surpassing previous records set by the PlayStation 2. The latest Japanese charts show Mario Kart World leading game sales, and the Switch 2 dominates hardware sales, outpacing other consoles including Xbox Series X and PlayStation 5.
Japanese steelmaker Nippon Steel plans to acquire American peer U.S. Steel for over $14 billion, in one of the largest acquisitions ever by the company. The deal aims to strengthen Nippon Steel's position in the growing U.S. market, as demand for steel products declines in Japan due to factors such as a declining birthrate.
Berkshire Hathaway's $6.25 billion investment in the Japanese market, which included shares in conglomerates like Itochu Corp. and Mitsubishi Corp., has proven to be a highly successful move. With interest rates in Japan at a low of half a percentage point, Berkshire Hathaway was able to borrow money and invest in stocks that paid 5% dividends, resulting in a significant flow of cash. Since the investment was made in 2020, the stocks of the Japanese companies have risen by an average of 94%. Charlie Munger, Berkshire's vice chair, described the investment as "like having God opening a chest and just pouring money into it." Berkshire Hathaway's position in the companies has now risen to 8.5%, and the investment has led to a stock market rally across Japan.
Asian stocks are on track for their worst week in a month-and-a-half due to recession fears as US data and earnings show signs of weakness. US Treasuries have rallied, with two-year yields falling as investors turn to safety and bet the US hiking cycle is over. The Japanese market is an outlier, with the Nikkei touching an eight-month high and on track for a second consecutive weekly gain. The US dollar has also been weighed down as traders bet on 50 bps in US rate cuts this year.