Yahoo Japan Shares Climb on E-Commerce Alliance With Alibaba

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Yahoo Japan Corp. jumped the most in a year in Tokyo trading after the online retailer said it is considering a partnership with Alibaba Group Holding Ltd.

The alliance would offer support and lower fees for Japanese e-commerce companies looking to list on China-based Alibaba’s Tmall and Tmall Global shopping sites, Yahoo Japan said in an e-mailed statement Friday. The Nikkei newspaper reported the tie-up earlier today.

Yahoo Japan’s shares jumped 12 percent, the most since May 20, 2014, to 556 yen in Tokyo. Alibaba fell 1.8 percent in New York Thursday.

The rising popularity of Japanese goods in China is creating an expansion opportunity for domestic merchants, Yahoo Japan said in the statement. The Tokyo-based company will local competition that three years earlier forced out Rakuten Inc., Japan’s biggest online shopping site operator.

Joining Alibaba would improve the chances of success in an e-commerce market worth 50 trillion yen ($404 billion), Hiroko Sato, an analyst with Jefferies Group LLC., wrote in a report. That’s about five times the size of Yahoo Japan’s home turf, she wrote.

The partnership will begin this summer, Nikkei reported, without saying where it got the information.

The two companies share SoftBank Corp. as a common shareholder. Billionaire Masayoshi Son’s company owns about 36 percent of Yahoo Japan and 32 percent of Alibaba, according to data compiled by Bloomberg.

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