nuclear-news

Long term investors wary about nuclear power’s future in Japan

Nuclear Caution Holds as Bonds Diverge With Stocks: Japan Credit
Bloomberg By Yoshiaki Nohara, Satoshi Kawano & Amina Mobley – Dec 26,
2012 Japan’s bond and stock investors are at odds as to whether Prime
Minister Shinzo Abe can speed up the restart of nuclear reactors idled
on earthquake concerns…… .

“The institutional investors at the core of the bond market are still not convinced whether nuclear power generation can resume in earnest and are considering the worst case- scenario,” said Takayuki Atake, chief credit analyst at SMBC Nikko Securities Inc. in Tokyo. “The equity markets, with their large proportion of individual investors, are more responsive to news flow and the short-term prospects.”…..

While the LDP has said Japan needs its 50 reactors working, all but two remain closed and any restart will need approval from the Nuclear Regulation Authority, which is investigating six atomic plants on concern they sit on active fault lines…….

Active Fault Japan Atomic Power Co.’s Tsuruga and Tohoku Electric’s Higashidori plants may be sitting on active faults, teams of scientists working for Japan’s Nuclear Regulation Authority said this month. Under the country’s guidelines, utilities are not allowed to construct reactor buildings and other important facilities above an active quake fault. Abe indicated he may allow utilities to build a new nuclear power plant if it meets safety standards to be set by the NRA, the Tokyo Shimbun reported Dec. 1, citing an interview with him. Former prime minister Yoshihiko Noda in September approved a policy calling for banning the construction of new atomic plants. LDP Chairman Hiroyuki Hosoda said in an interview with Bloomberg last month that Japan must restart its plants quickly after confirming they’re safe, citing increasing energy prices….. http://www.bloomberg.com/news/2012-12-26/nuclear-caution-holds-as-bonds-diverge-with-stocks-japan-credit.html

December 27, 2012 - Posted by Christina Macpherson | business and costs, Japan