Tiny Pacific Islets Sinking Giant Japanese Businesses in China
The Japanese retailer Uniqlo also closed shops in China over the island sovereignty dispute, but share prices of its owner Fast Retailing (FRCOF) have held steady this month following a strong net-profit report for nine months ending in May.
On the travel side, Japan Airlines (JAL), Asia's second largest airline by valuation, has also cut China flights as it logged 12,000 cancellations through November. After an IPO earlier this month, the airline's share prices rose just 1% on the first date of trading under the weight of protests in China. JAL delisted after it went bankrupt in 2010 but later restructured to turn profitable.
Wait on the shares of these firms to see how low the row with China pushes them. As the dispute resolves, they will represent a buying opportunity.
At the time of publication, the author held no positions in any of the stocks mentioned.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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