Tokyo Electric Power shares jump on nuclear restart hopes

Tokyo Electric Power Co. Holdings Inc. 9501,
+ 9.43%
Shares rose sharply on Friday morning with rising hopes of restarting government-led nuclear reactors.

The company’s shares recently rose 8.8% to 496 yen ($ 3.81) after rising to 10% earlier.

The Tokyo metropolitan government said Monday it had made a shareholder proposal, asking Tokyo Electric to restart nuclear reactors, citing a possible power shortage later this year.

Japanese markets were closed from Tuesday to Thursday for public holidays. The metropolitan government has a 1.2% stake in the power company.

Meanwhile, Prime Minister Fumio Kishida said in a speech in London on Thursday that the government plans to use nuclear energy to help reduce Russia’s global dependence on energy, according to media reports.

Kishida said in April that the government plans to maximize the use of nuclear power to ensure a stable energy supply, which will lead to an increase in the shares of the power companies at the time.

Other utility stocks also rose on Friday. Kansai Electric Power Co. share 9503,
+ 3.69%
increased by 3.2% and Chugoku Electric Power Co. shared 9,504,
+ 4.64%
they were 3.8% higher.

Restarts of existing nuclear reactors have been a hot topic in Japan since the Fukushima nuclear disaster in March 2011.

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