English
TOKYO — Shares of Japan’s Toyo Engineering, which is developing offshore rare-earth extraction technology, surged to a 17-year high on Monday after China launched its largest-ever war games around Taiwan.
Toyo Engineering stock went limit up at 3,220 yen, up 18.55% from Friday and marking a high not seen since August 2008.
The company is developing a system for recovering mud rich with rare earths off the coast of Minamitorishima, Japan’s easternmost island. Test mining using the technology is scheduled to take place between Jan. 11 and Feb. 14.
Toyo Engineering’s stock has risen sixfold from the low of 530 yen logged on April 7. The stock began to rally in early July following reports that the Japan Agency for Marine-Earth Science and Technology (JAMSTEC), which is overseeing the rare-earth project, will begin test extraction next year.
The shares received another shot in the arm when the Chinese military announced Monday a massive live-fire exercise encircling Taiwan. The move appears to serve as a stern warning against actors within Taiwan calling for the island’s independence, as well as external interference.
The military drills by China, which produces most of the world’s rare earths, also prompted a significant stock price gain for Japanese resource recycling company Asaka Riken.
Relations between Beijing and Tokyo have cooled over Japanese Prime Minister Sanae Takaichi’s remarks on a potential Taiwan contingency. “Concerns about export restrictions on rare earths have been rekindled in light of the Chinese military drills,” said Hideyuki Suzuki, general manager of investment research at SBI Securities.
“Source: Asia Nikkei.com”
