Ohtani Team in Baseball Classic May Boost Japan’s Sports Stocks
(Bloomberg) – With Shohei Ohtani set to lead a star-studded Japanese team at this year’s World Baseball Classic, investors in the country’s stock market could be eyeing gains in sports stocks.
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It will be a homecoming for Ohtani – the rare two-way phenom who ranks among the world’s top pitchers as well as top hitters – who has played in Major League Baseball in the United States for five years. Japan is hosting its first-round group for the WBC, which takes place March 8-21, in Tokyo.
Shares in sporting goods manufacturer Mizuno Corp. and pub operator Hub Co. Ltd., which rose sharply during last year’s FIFA World Cup, may be back in action. The popular football tournament had, according to a report by the Daiwa Institute of Research Ltd. economic impact on Japan of around US$120 million.
Although related stocks’ popularity around major events is generally temporary, there are a “set of trading opportunities this year,” said Toshihiro Nagahama, chief economist at the Dai-Ichi Life Research Institute. Other upcoming tournaments include the FIFA Women’s World Cup this summer and the Rugby World Cup in the autumn.
Stocks to focus on in Japan include sports equipment makers Asics Corp. and Descente Ltd. and retailer Xebio Holdings Co. Public broadcasters TBS Holdings Inc. and TV Asahi Holdings Corp. will be showing some WBC games and sponsors include Nippon Express Holdings Inc. and Konami Group Corp.
Ohtani’s baseball genius helps sponsors outperform the market
Recent sporting events have also put Japan’s tech stocks in the spotlight. CyberAgent Inc. drew attention during the World Cup due to heavy usage of its Abema TV streaming service, which showed the games in Japan for free. Sony Inc. has attracted attention with its Hawk-Eye visualization technology used to assist referees.
The World Baseball Classic has been held sporadically since its inception in 2006. Japan, who won the opening event and again in 2009, will play the first round of this year’s competition against Korea, China, Australia and the Czech Republic.
In addition to Ohtani, Japan’s WBC team will include MLB hurler Yu Darvish and Nippon Professional Baseball League star slugger Munetaka Murakami. While the Samurai Japan team sits at the top of the world rankings, they are currently the third favorite to win the title, behind the Dominican Republic and the USA, according to Fox Bet odds.
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