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Japan’s Top Power Generators Rally as Heat Spurs Energy Demand

  • Tokyo Electric shares jump as much as 12%, most since May
  • Scorching temperatures pushed the country’s grid last week
Temperatures in Tokyo soared last week, resulting in the most severe heatwave for the end of June.

Temperatures in Tokyo soared last week, resulting in the most severe heatwave for the end of June.

Photographer: Kiyoshi Ota/Bloomberg

Shares of Japanese utilities extended a rally on the back of hot summer weather that is driving demand for cooling and pushing spot electricity prices higher.  

The country’s top power generator Tokyo Electric Power Co. jumped as much as 12%, the most since May 6. The stock was among the biggest gainers by percentage change in Japan’s benchmark Topix Index. Kansai Electric Power Co. and Chubu Electric Power Co. rose as much as 3.1% and 2.9%, respectively.