DOWA Holdings shares close high, Japan stocks reverse earlier losses

After the increasing tension in Hong Kong, the Asian stocks were mixed in Wednesday trading. While the Shanghai Composite Index and the Hang Seng Index declined, the Japanese stocks closed high on Wednesday.

The Real Estate, Paper & Pulp and Railway & Bus were the leading sectors that contributed to the jump in Japanese stocks. One of the best performers in the Wednesday trading was the metal manufacturer DOWA Holdings. The company’s shares rose 10.57% or 335.0 points and closed at 3505.0 on Wednesday.

DOWA Holdings has several main business segments that include Environmental Management & Recycling, Nonferrous Metals, Electronic Materials, Metal Processing and Heat Treatment. The company’s biggest division is the one developing nonferrous metals, comprising 44.6% of DOWA Holdings’ net sales.

The Wednesday trading, however, was not that successful for other Asian stocks. After China reported its plans for implementing a new security law in Hong Kong, the tension between the U.S. and China continued to grow. This affected the stocks in Shanghai and Hong Kong negatively and many investors worried about the future of businesses in the autonomous territory.

Several small protests already took place in different parts of Hong Kong. Police forces had to intervene and fire pepper pellets at protestors. This raised concerns about bigger waves of unrest among Hong Kong citizens and larger protests, resembling last year’s uproar.

Despite the uncertainty in Hong Kong, the Japanese stocks enjoyed a significant jump on Wednesday. The Nikkei 225 gained 0.70%, resulting in a significant recovery from the losses during the last month.

Analyst stock price forecast and recommendation

According to Investing.com, a 12-month forecast on the DOWA Holdings stock shows that analysts have an average price target of 3,344.3, with a high estimate of 4,100.0 and a low estimate of 2.800.0.

The same media also offers recommendations for the DOWA Holdings stock. Those are based on the ratings of 8 investment analysts who have participated in a poll. Out of the 8 surveyed analysts, 3 rated the company’s stock as “Buy” and 5 are neutral. The consensus rating for the DOWA Holdings stock is “Outperform”.