No-spectator Olympics produces winners and losers for Japanese stocks

Jul 21, 2021 | News On Japan

Jul 21, 2021 (Japan Times) - Tokyo’s delayed Olympics is flipping conventional wisdom on its head, with Japan’s stay-at-home stocks expected to emerge as winners rather than once-favored advertisers, real-estate firms and travel operators.

Thanks to the resurgent pandemic, shares in the likes of fried-chicken chains, food-delivery operators and electronics stores selling TVs are seen as more likely to get a boost from the Games, according to analysts.

“Purchases of food and TVs will be expected to increase, as people seek to make the Olympics more fulfilling,” Naoya Kumagai, a strategist from Okasan Securities, wrote in a recent report. “Even though the Games will be held in an irregular fashion, it can still provide a tailwind for many companies.”

Among the stocks on the Okasan watchlist are KFC Holdings Japan Ltd., which runs the fried-chicken empire in Japan. It saw sales increase in May and June amid increased stay-home demand. Its shares have risen about 3% over the past month, handily outperforming both the benchmark Topix Index and the Olympics’ official marketing agency Dentsu Group Inc.

The run-up to Tokyo’s year-delayed Olympics has been a fraught one as COVID-19 cases jump in the city and visiting athletes test positive for the virus. Japanese public support is mixed at best, raising questions over the merits of marketing the competition.

Still, success on the field might translate to gains for certain stocks if Japan can retain its home-field advantage in the absence of fans. Entertainment researcher Gracenote Inc. predicts the country could take a record haul of 61 medals, nearly 50% more than five years ago in Rio, including 26 golds.

That could benefit the likes of sponsors and supports including Mizuno Corp., the swimwear supplier for Japan’s closely watched swim team, which includes leukemia survivor Rikako Ikee. Shares in Asics Corp., a key sponsor and supplier of the Japan team’s sportswear, have nearly doubled over the past year, though have dipped almost 15% so far in July.

Demae-Can Co., the nation’s main listed food-delivery operator whose stock has fallen 56% this year, may also see a boost, according to Okasan. And makers of 4K televisions may also benefit, with the Olympics expected to be an ideal time to upgrade old TV sets.

Toyota to Launch Self-Driving Taxis in 2027

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji Puts on First Snowcap

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

Chinese Female Spy Suspected of Targeting Nvidia Chief

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

Japan Blocks Websites Leaking GMO Personal Data

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 Heads Toward Japan's Remote Islands

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS

MORE Society NEWS

Landlords Bear Financial Burden of Lonely Deaths

Japan's rapidly aging population is facing a growing crisis of elderly people dying alone at home, with grieving families sometimes unable to see their loved ones before burial and landlords increasingly forced to shoulder substantial cleanup and estate clearance costs when relatives abandon their inheritance.

Prison Inmates Help Preserve Japan's Traditional Crafts

Traditional Japanese crafts are finding an unexpected source of skilled workers in prisons across the country, where inmates are learning painstaking production techniques that build patience and concentration while helping preserve industries struggling with a shortage of craftspeople.

South Korean Man Arrested Over Killing of Japanese Woman Following Stock Crash

A Japanese woman in her 20s was found dead at an apartment complex in Cheonan, central South Korea, on October 29th, prompting police to detain a South Korean man in his 30s on suspicion of murder after he allegedly confessed to killing her because he had decided to commit suicide following stock market losses but could not bring himself to die alone.

Japan's Imperial Family Hosts Autumn Garden Party

Emperor Naruhito and Empress Masako hosted the annual autumn garden party at the Akasaka Imperial Gardens in Tokyo on October 29, welcoming approximately 1,400 guests, including actor Kotaro Yoshida and novelist Miyuki Miyabe, while female members of the Imperial Family attended in traditional Japanese attire.

Rescuers Save Paraglider Who Stopped Breathing

A 59-year-old water sports rental shop owner in Omachi, Nagano Prefecture, has received a letter of appreciation from police after rescuing a paraglider who plunged into a lake on September 21, pulling the unconscious man from the water and performing CPR after discovering he was no longer breathing.

Couple's Gardening Hobby Turns Out to Be Cannabis Cultivation

A married couple in Aira, Kagoshima Prefecture, have been arrested after police discovered cannabis plants growing in pots on the terrace of their home during a search connected to a separate investigation, authorities said on October 28th.

Elderly Woman Drives Along Railway Tracks, Ends in Tragedy

A woman in her 80s was killed after her car entered railway tracks on the Odakyu Enoshima Line in Fujisawa, Kanagawa Prefecture, shortly before 10:30 p.m. on October 27, with security camera footage showing the vehicle traveling along the tracks, passing an oncoming train and stopping with its hazard lights flashing before being struck from behind by another train.

Teen Hospitalized After Electric Shock From Basketball Hoop

A teenage male was rushed to a hospital after suffering an electric shock while putting away a motorized basketball hoop at a gymnasium in Kitakyushu, Fukuoka Prefecture, in an accident believed to have been caused by an incompatible extension cord, according to a report on October 27th.

< 2 3 4 5 >