Japan’s Trading Houses Affected by Increase in Mega Block Trades

Investors in Tokyo are feeling uneasy due to a recent spike in large block trades involving Japanese trading firms and insurance companies.

Since February 26, there have been at least six block trades tied to Mitsui & Co. shares, collectively reaching ¥113 billion ($765 million), alongside a solitary trade of ¥15 billion in Itochu Corp., as indicated by Bloomberg data. Each of these trades represented over 60% of the stock’s average daily volume over a 20-day span.

In addition, Tokio Marine Holdings, a major insurer, witnessed transactions aggregating at least ¥145 billion.

Takehiko Masuzawa, the head of equity trading at Phillip Securities Japan, remarked, “These trades are perplexing. It’s hard to ascertain the motivations behind them.” He highlighted that consecutive large block trades like these are quite rare.

Block trades involve the buying and selling of substantial quantities of stock at a privately negotiated price.

Following Berkshire Hathaway Inc.’s announcement of its plan to increase its stake in the country’s five largest trading houses, including Mitsui and Itochu, shares in these firms saw a rise last week.

Yusuke Sakai, a senior trader at T&D Asset Management Co., suggested that companies, banks, or insurers might be employing block trades to liquidate their strategic holdings.

© 2025 Bloomberg

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