Why are ASX uranium shares going gangbusters on Thursday?

ASX uranium shares are shining bright today.

While the All Ordinaries Index (ASX: XAO) is putting in a solid day, up 0.8% as we head into the lunch hour, leading ASX uranium shares are rocketing far higher.

For example:

• Paladin Energy Ltd (ASX: PDN) shares are up 12.9%
• The Deep Yellow Limited (ASX: DYL) share price is up 13.1%
• Bannerman Energy Ltd (ASX: BMN) shares are up 17.0%
• The Alligator Energy Ltd (ASX: AGE) share price is up 8.8%

So, what’s piquing investor interest today?

What’s driving investor interest?

Investors are snapping up ASX uranium shares following on news that Japan is actively seeking to ramp up its nuclear power generation.

It’s been more than 11 years now since Japan shuttered all of its nuclear reactors.

As we’re sure you’ll recall, that came in the wake of the tsunami-driven disaster at its Fukushima Daiichi nuclear power plant in March 2011. Uranium prices and ASX uranium shares fell hard over the following months, with most only beginning to rebound in 2021.

Currently, Japan only has 10 nuclear plants online, with nuclear energy providing around 7% of its electricity in 2021.

But that number looks set to grow.

With Japan heavily reliant on energy imports (coal, oil and gas), Russia’s invasion of Ukraine has spurred the country into revisiting nuclear power. All the more so following soaring energy demand during the northern summer heatwave, alongside the goal of reducing carbon emissions.

Yesterday, Prime Minister Fumio Kishida announced that Japan will look into developing next generation nuclear power plants and reopen a number of closed plants.

As Bloomberg reports, Japan wants to restart seven more nuclear reactors. That would see the nation with 17 online reactors out of 33 in operational status, news that looks to be driving ASX uranium shares higher today.

“Nuclear power and renewables are essential to proceed with a green transformation. Russia’s invasion changed the global energy situation,” Kishida said.

How have these ASX uranium shares been tracking longer term?

Though many have retraced in 2022, the ASX uranium shares listed above are all well into the green over the past 12 months.

Since this time last year, the Paladin share price is up 69%; Deep Yellow shares are up 27%; Bannerman shares have gained 42% and the Alligator Energy share price is up 107%.

The All Ordinaries comes in far behind these ASX uranium shares, having lost 7% over the 12 months.

The post Why are ASX uranium shares going gangbusters on Thursday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Up 26% in a month, is the Paladin Energy share price on the comeback trail?
• The ASX shares with 30% to 50% upside: fundie
• Why did the Paladin Energy share price rocket 28% in July?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NxQ9CbF