Royal pregnancy moves baby-goods shares

Investors expect the royal pregnancy could lead to a rise in Japan's birth rate

TOKYO, Japan -- The unexpected news that Japan's Crown Princess Masako is pregnant has set shares in baby-goods firms moving.

Anticipating a baby boom spurred by the royal pregnancy, Japanese investors initially rushed for shares in companies like Pigeon, a maker of baby-care goods, and infant wear manufacturer Kimuratan.

Pigeon was bid at 875 yen with no sellers on Monday, up by its daily limit of 100 yen, or 12.9 percent. Kimuratan gained more than 60 percent to 60 yen.

But despite the early run on these issues, brokers said the trend was not expected to last very long.

By Tuesday, some of the stocks were hit by profit taking. Kimuratan fell 10 yen or 16.67 percent to 50 yen, paring some of Monday's surge.

Baby goods and health care product maker Combi Corp dropped 12.7 percent to 690 yen after a rapid rise the day before, while paper diaper maker Uni-Charm shed 3.83 percent to 5,020 yen, following its 5.24 percent rise in the previous session.

But Pigeon bucked the trend and was up 2.17 percent at 894 yen, adding to its 12.9 percent jump on Monday.

Japan's Imperial Household Agency announced Princess Masako is "showing signs" of pregnancy with a possible heir to the Chrysanthemum Throne after nearly eight years of marriage to Crown Prince Naruhito.

If the pregnancy is confirmed, the baby will be due in early December.

Reuters contributed to this report.

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