Many Japanese power companies spiked on Monday following Prime Minister Fumio Kishida’s announcement that the government is planning to tap nuclear power once again to stabilize the country’s power supply.
This follows after the Asian nation released a new set of sanctions against Russia on Friday. The government also asked the country’s power companies to top up their energy reserves as a full-on phase-out of Russian coal imports is set to take effect..
Tokyo Electric Power rose 16.23% on the day while regional utilities firms Chubu Electric Power and Hokuriku Electric Power spiked 7.40% and 3.45%.
Kishida said the government is eyeing to maximize nuclear and other renewable energy resources to bridge the possible shortage. The decision also reflects the results of the recent poll that saw 53% favoring the restart of nuclear reactors if safety can be ensured.
Tokyo started scaling back its energy resources from nuclear since the 2011 Fukushima disaster. So far, 10 reactors have been activated since the event but Japan is targeting to open all 33 by 2030.
Information for this briefing was found via Japan Times and Market Watch. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.