Greg Abel, Chief Executive of Berkshire Hathaway, has stated that the upward movement in Japanese bond yields has not negatively impacted the conglomerate's stakes in the nation's major trading houses. On Wednesday, Abel noted that while rising yields are a hot topic in Japanese markets—with the 10-year government bond yield hitting a 30-year high this week—the issue remains manageable, at least for the top-tier sogo shosha.

"At this point, none of the trading houses have listed it as a fundamental challenge," he said. "Looking at it objectively, Japanese yield levels are still relatively moderate." Abel pointed out that despite being at multi-decade highs, Japanese government bond yields remain low in absolute terms when compared to other global fixed income markets. The 10-year yield in Japan, even at its highest level in decades, sits just above 3%, whereas the US 10-year Treasury yield surged past 4.8% on Tuesday, reaching its highest point in nearly three years.

Berkshire Hathaway holds more than 10% stakes in Japan's five major trading houses—Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo—whose operations span a wide array of industries, from energy to consumer goods. Abel's current visit to Tokyo involves not only reviewing these five companies but also exploring other Berkshire investment prospects in Japan.

Abel added that even with current yields on the rise, Berkshire would still issue yen-denominated debt when the timing is appropriate. When the company initially invested in these trading houses, it committed to not acquiring double-digit stakes in any of the five firms. Abel stated that six years after the initial investment, Berkshire has since obtained permission from each company to raise its ownership above 10%.

Abel reaffirmed that the group continues to see strong value in these investments. Since the initial positions were built six years ago, the trading houses' share prices have climbed significantly, delivering substantial returns for Berkshire. "First, this is a long-term investment, and we plan to hold it for decades," he said. "Second, we have built very solid relationships with each company, and we are also exploring other investment opportunities both in Japan and overseas. The quality of communication among all parties has been excellent."