Shares of five Japanese trading houses were on a tear after Buffett wrote in Berkshire Hathaway's annual shareholder letter on Saturday that it would increase its investment in the companies. Berkshire first started buying shares in five Japanese trading house giants — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — in July 2019.

Japanese trading-house stocks rose sharply after Warren Buffett said Berkshire Hathaway’s stakes in them would likely increase somewhat over time.

Shares in Japan's five major trading houses rose more than 5% in early trade on Tuesday after billionaire investor Warren Buffett said his conglomerate Berkshire Hathaway would likely increase its ownership in them.