Avanti Feeds, other shrimp stocks jump up to 12% after China suspends Japanese seafood imports: Here's why

About this update from Apex Frozen Foods Ltd.

The shares of shrimp companies sharply surged on November 19 after China notified Japan that it will ban all imports of Japanese seafood.This comes as relations between Beijing and Tokyo deteriorated over Japanese Prime Minister Sanae Takaichi's comments on Taiwan. Indian shrimp-feed companies export products to China. Hence, the ban on Japanese seafood may have increased expectations of higher demand in China.Apex Frozen Foods shares jumped nearly 5 percent to trade at around Rs 305.99 apiece. Coastal Corporation shares jumped 9 percent, while Avanti Feeds shares surged nearly 12 percent.India-US trade deal hopes:Additionally, Union Commerce Minister Piyush said "good news" on the proposed India–US trade agreement can be expected once the two sides arrive at a deal that is fair, equitable and balanced.Speaking at the Indo-US Business Summit in New Delhi, Goyal said, "Negotiation is a process and India as a nation has to secure the interest of its stakeholders and balance it with our sensitivities - our farmers, fishermen, small industry. You will hear good news once the deal becomes fair, equitable and balanced."The minister further said he doesn't consider there to be a hiatus in India-US relations. "It continues to be very important and strategic for both countries. We have just signed the 10-year defence pact with the department of war of the US. A partnership which is as comprehensive as the US-India relationship has many elements and every element need not run at the same speed," he said adding that sometimes there is some bickering in every family."The story of Indo-American partnership can best be described as two trusted partners working together for the shared prosperity for not just the two countries, but for the entire world. In fact we have just signed a major LPG agreement for importing 2.2 million tons per annum from them. So it is an ongoing partnership," he said.The latest comments by the Indian minister boosted investor sentiment as it would likely result in reduction in tariffs levied on Indian exports to the US, benefitting the export-oriented sectors significantly. US President Donald Trump has also reiterated his claim several times that India and US are nearing a trade deal.Why are shrimp stocks rallying?The shares of these export-oriented companies had significantly declined earlier after the Trump administration increased tariffs ...

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