(Reuters) - Japanese stocks banking on the success of the Olympics this year surged on Monday, after sharp falls in prior weeks, bolstered by the International Olympic Committee’s (IOC’s) comments that it was looking to delay but not cancel the Tokyo Games.
Shares of travel agent H.I.S. Co Ltd (9603.T) and audio and visuals firm Hibino Corp (2469.T) rose more than 10% each, while advertising firm Dentsu Group (4324.T) and sportswear maker Asics Corp (7936.T) added over 5% each.
The IOC is stepping up its “scenario planning” for the Tokyo 2020 Games - including a possible postponement - as the coronavirus pandemic spreads, it said after an emergency meeting on Sunday.
Japan’s Olympics-related shares have slumped this year on worries the spread of the coronavirus pandemic across the world would jeopardize the event, slated to begin in late July.
More than 14,000 people have died globally since the coronavirus outbreak began in China late last year. As of Monday morning, Japan had 49 deaths and 1,813 infections.
Japanese Prime Minister Shinzo Abe on Monday said for the first time that the Tokyo Olympic Games may need to be postponed if they cannot be held in their “complete form” due to the coronavirus pandemic.
The following charts show how market prices and valuations of these firms have changed over the past couple of months.
(Graphic: Weekly performance of Japanese companies directly involved in Olympics 2020 link - here.jpg)
(Graphic: Change in P/E ratios of Olympics-involved stocks link - here.jpg)
(Graphic: Percentage change in 2020 consensus earnings estimates link - here.jpg)
(Graphic: Weekly performance of some domestic sponsors of the tournament link - here.jpg)
(Graphic: Index comparison link - here.jpg)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Tom Hogue