Shares in Takata, whose faulty airbags prompted the world’s largest automotive recall, jumped higher in Japan on hopes the company is close to settling criminal charges with the US Department of Justice.

Shares were up 17.5 per cent at a 14-month high of ‎¥‎1,007 in the Japanese market’s first trading session for 2017. The broader Topix was up 1.9 per cent.

This follows double-digit gains for the stock on both Thursday and Friday last week, in the wake of reports a settlement could be reached this month, bringing the cumulative gain over the past three sessions to 65.9 per cent

Late last month, Reuters reported the criminal charges could be settled before the Obama administration leaves office, while the Wall Street Journal said Takata is expected to pay a fine in the high hundreds of millions, or at the most about $1bn.

Takata last year sought an out-of-court restructuring agreement with carmakers to avert possible bankruptcy. The company has been searching for the financial support of an outside investor, has sold off businesses and stakes in client car companies to raise cash as it weathers a safety scandal involving defective airbags that have sprayed shrapnel in people’s faces.

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