Japanese firms that chose stock splits are outperforming the market

Jul 11 (Bloomberg) - Japanese companies that conducted stock splits recently have seen their shares outperform the market, showing one reason why investors can’t get enough of those equities.

More than 80 Japanese firms including chip device maker Rohm Co. and Shin-Etsu Chemical Co. have announced stock splits so far in 2023, almost double the pace of a year earlier and the most for the period in five years, according to data compiled by Bloomberg.

While dividing up equity into more shares shouldn’t affect its total value, the move lowers the price per stock, making it more affordable for less cash-rich investors to buy. The added demand often boosts the share price as well, offering investors further incentives to put their money in the split equities.

In fact, more than half of Japanese companies conducting stock splits this year have outperformed the Topix index a month after announcing the move, according to Bloomberg calculations. Moreover, the divided shares tended to have sharper price moves than the market benchmark, and they beat the Topix by about 5 percentage points on average a month after disclosing the step. ...continue reading

Aomori Issues Season’s First Heavy Snow Warning

Aomori Prefecture was hit by intensifying snowfall on November 18th as the country’s first heavy snow warning of the season was issued, with the hot spring district of Sukayu reporting more than one meter of snow amid rapidly worsening conditions.

Japanese Embassy in Beijing Urges Citizens to Stay Vigilant

The Japanese Embassy in Beijing urged Japanese nationals in China on November 18th to take extra precautions for their personal safety as the Chinese government intensifies its opposition to Prime Minister Takai’s recent comments regarding a potential Taiwan contingency, prompting the embassy to send a warning email later in the evening.

Japan Is Facing an Unprecedented Surge in Bear Attacks

A reporting team found itself face to face with a bear while investigating the sharp rise in bear-related incidents that has left 13 people dead this year.

Sakurajima Erupts, Sending Plume 4,400 Meters High and Disrupting Flights

Sakurajima erupted in the early hours on October (date not provided in source), sending a plume of ash soaring to 4,400 meters above the crater, the first time it has exceeded 4,000 meters since October last year, with volcanic rocks reaching as far as the sixth station on the mountainside as the volcano continued erupting intermittently throughout the morning and caused ash to fall over Kagoshima Airport, where a thin layer accumulated on aircraft.

JAL Cabin Crew Get OK to Wear Sneakers

Japan Airlines (JAL) has introduced a new policy starting November 13th allowing its cabin crew and ground staff who serve customers at airports to wear sneakers during work hours.

MEDIA CHANNELS

MORE Business NEWS

Fiscal Deterioration Could Weaken Yen Under Takaichi Policies

Takaichi’s administration is moving closer to finalizing its economic package aimed at easing the strain of rising prices, with the government preparing a set of measures that include a gasoline tax cut, fresh investments across 17 priority fields and expanded subsidies for electricity and gas bills.

Is Japan’s Lifetime Employment Model Creating “Do-Nothing Middle-Aged Workers”

Japan’s traditional employment practices are once again under scrutiny as debate intensifies over so-called “do-nothing middle-aged workers,” with critics arguing that long-standing structural issues in hiring, promotion, and job assignment have allowed a segment of workers to lose motivation while remaining in secure positions.

Inside the Making of Japan’s New Luxury Hotels

Nara, previously lacking in accommodation options, now hosts a unique category of high-end hotel. The person responsible for creating these unconventional luxury properties across Japan is the daughter of one of the country’s wealthiest families and leader of a major real estate company with total assets exceeding 1 trillion yen.

Nissan to Double Number of Mall Showrooms by 2027

Nissan Motor announced on November 14th that it plans to double the number of its showrooms inside shopping malls to more than 30 locations from fiscal 2027 onward. The move will expand its presence in the growing category of “experience-based stores,” a format increasingly adopted in the apparel industry and other sectors.

Japanese Automakers Search for Winning Strategy

Japanese automakers are under increasing pressure as China’s aggressive push in electric vehicles continues and the impact of U.S. tariffs under former President Donald Trump looms large. With total tariff-related losses for seven major manufacturers projected to reach 1.5 trillion yen, analysts are examining how Japanese companies plan to stay competitive.