Japan’s earnings surprise analysts to fuel bets for broad rally
Companies posted their largest earnings beat in five years despite soaring oil costs.
Japanese firms outperformed analysts' expectations in the most recent quarter, marking the largest earnings beat in five years, according to Bloomberg data. Despite rising oil prices, the majority of local companies reported profits surpassing forecasts, signaling potential for a broader market rally beyond just AI-related stocks.
Out of the 500 largest companies in Japan, 71% of them posted earnings that exceeded analyst projections during the three months leading up to June. The total net income generated by these major firms reached ¥21 trillion ($132 billion), setting a new record that surpassed the previous high of around ¥18 trillion achieved a year ago.
Profitability also showed significant improvement, with Topix companies projected to attain record margins of 9.3%, the highest level observed since comparable data began more than three decades ago.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
