Shares of Japanese utility companies have risen. Prime Minister Fumio Kishida called for up to nine nuclear reactors to be brought online this winter. to help avert an energy crisis.
Hokkaido Electric Power Co. led the gains on Friday advancing as much as 4.5%. After Kishida told the Ministry of Economy, Trade, and Industry to push for restarts, which could cover about 10% of Japan’s energy consumption. Shikoku Electric Power Co. and Hokuriku Electric Power Co. rose as much as 3.5%.
Japan has been struggling with power supply amid extreme weather and delays in restarting nuclear plants. It forces the government to ask Tokyo’s citizens to conserve electricity to avoid blackouts.
Kishida’s stance is in line with existing plans by regional utilities, but is “a modest positive for electric power stocks by emphasizing the importance of nuclear power to the country’s energy supply,” Citigroup Inc. analyst Yui Shoji wrote in a note.
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