Big Japanese Energy Companies as Inflation Hedge

Rising inflation in most of the world’s economies and the Russian sanctions are driving up energy and commodity prices. Experts believe this will have a significant impact on the global economy. Even the IMF has now issued a warning and downgraded the growth outlook for most economies.

Investors need to think carefully about their investments in such times. In an environment of rising inflation, commodities usually perform well. And so do mining and trading companies.

Investors considering other countries when diversifying their portfolios could also look at Japan. Japanese energy companies could be a lucrative alternative to home-grown stocks, as energy prices are likely to continue rising in the near future. Which Japanese energy companies could be interesting?

  1. INPEX (TYO: 1605): Inpex is a company that produces and distributes oil and natural gas. The company’s stock seems to have experienced an upswing since the beginning of the year and has already gained over 57% in one year and over 103%.
  2. JX Holdings (TYO: 5020): JX Holdings was formed from the merger of Nippon Oil and Nippon Mining in 2009. JX Holdings is active in the oil and gas business. The stock has gained 20% year to date.
  3. Idemitsu Kosan co. Ltd. (TYO: 5019) operates Japan’s second-largest oil refinery, and the company’s largest businesses are petroleum production, petrochemicals, and raw materials. The company’s stock rose 15.9% last year and 28.7% for the year.
  4. K&O Energy Group Inc (TYO: 1663) is a company that produces, distributes, and sells natural gas domestically and internationally. The company’s stock may have already increased slightly by 15.4% year-on-year.

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