December 21, 2012, Seeking Alpha
The results from Japan’s general election on Sunday, December 16 may be a bellwether event for nuclear power. In a landslide win, Japan’s Liberal Democratic Party claimed 294 out of the 480 seats in the lower house of the Diet Sunday, defeating anti-nuclear opponents with a platform focused on economic issues and foreign policy.
The Global X Uranium Exchange Traded Fund (URA), which tracks a number of global companies operating in the sector, is up 9.65% since the election results.
Rob Chang of Cantor Fitzgerald Canada commented:
"We view the Japanese election results as a catalyst for the uranium market because it is the strongest indication to date that Japan will return to meaningful nuclear electricity use. With the Russia-U.S. highly enriched uranium agreement drawing to a close at the end of 2013 and removing about 24 million pounds of uranium from the market, Cantor Research forecasts a continuous uranium supply deficit for many years."
Source: Cantor Fitzgerald Research