Latest news with #TOPIX
7 days ago
- Business
Tokyo Stocks Jump after U.S. Court Blocks Trump Tariffs
News from Japan Economy May 29, 2025 17:40 (JST) Tokyo, May 29 (Jiji Press)--Stocks jumped on the Tokyo Stock Exchange on Thursday after a U.S. trade court issued a ruling overnight blocking President Donald Trump's administration from imposing tariffs. A wide range of stocks, especially automakers and other economically sensitive issues, attracted buying as the yen slid against the dollar and other major currencies following the U.S. court ruling. U.S. chip giant Nvidia Corp.'s solid earnings report, released after the U.S. stock market closed overnight, boosted artificial intelligence-related issues on the Tokyo market. The benchmark Nikkei 225 average surged 710.58 points, or 1.88 pct, to close at 38,432.98, its highest finish in about three months. The broader TOPIX index advanced 42.51 points, or 1.53 pct, to 2,812.02. In Tokyo currency trading, the dollar stood at 145.26-26 yen at 5 p.m., up from 144.14-15 yen at the same time on Wednesday. The euro was at 1.1275-1276 dollars, down from 1.1326-1327 dollars, and at 163.79-81 yen, up from 163.28-30 yen. [Copyright The Jiji Press, Ltd.] Jiji Press
Yomiuri Shimbun
23-05-2025
- Automotive
- Yomiuri Shimbun
Listed Companies' Financial Results: Overcome Headwinds with Proactive Strategies
Listed companies have been reporting strong financial results. However, this fiscal year, the situation has changed significantly, and they are likely to face headwinds from the negative impact of tariff measures by U.S. President Donald Trump. It is hoped that companies will not fall into a defensive posture, but rather implement proactive strategies to continue to grow, and will achieve high wage increases. Almost all companies listed on the Tokyo Stock Exchange have announced their earnings for the year ending March 31, 2025. The combined net profits of companies that make up the Tokyo Stock Price Index (TOPIX), excluding firms in the financial sector, hit a record high for the fourth consecutive year. In addition to the strong performance of semiconductor-related companies due to increased demand for chips, corporate performance in the automobile industry also remained firm. The total net profits of the manufacturing sector amounted to about ¥22.7 trillion. The railroad sector, which is benefiting from the full-fledged recovery of visitors to Japan, and information technology-related services, which are experiencing strong demand for investment in digital technology, also performed well. Mainly for these reasons, non-manufacturing companies' net profits increased. It can be said that the trend of listed companies achieving high growth and giving it back in the form of higher wages has been making steady progress. The concern is corporate performance for the fiscal year ending March 31, 2026, when the impact of the U.S. government's high tariff policy will be felt fully. Forty percent of the about 1,000 companies forecast a decrease in profits. In particular, the damage to the automobile industry, a key industry in Japan, is expected to be large. Toyota Motor Corp. has estimated that tariffs will be a factor in a ¥180 billion decline in operating profit for the two months of April and May. Honda Motor Co. also forecast an annual decline of ¥650 billion in operating profit due to tariffs. Four out of the seven major automakers have disclosed earnings forecasts. According to them, their total net profits are expected to fall 40% from the previous fiscal year. The automobile industry has led the way in high-level wage increases for three consecutive years until this year's shunto spring wage negotiations. If momentum for higher wages wanes, the transition to a growth-oriented economy, in which wages and investment both increase, could be derailed. With about ¥600 trillion in corporate internal reserves, companies should have the capacity to weather the adverse economic conditions. They need to continue their efforts to keep wage increases flowing. With the outlook becoming increasingly uncertain, many companies have begun to slash their workforces, even though they are in the black. The number of listed companies offering early or voluntary retirement is rapidly increasing. Panasonic Holdings Corp. has announced that it will cut a total of about 10,000 jobs in Japan and overseas. On the other hand, some companies are anticipating growth despite the headwinds. Ajinomoto Co. forecast its highest profit in three years for the fiscal year ending March 31, 2026, on the back of growth in electronic materials for semiconductors, among other factors. It is hoped that companies will look for new growth areas, rather than relying on restructuring. There is a possibility that the protectionist stance of the United States will be prolonged. It also will be important to reduce dependence on the United States and develop new sales channels. (From The Yomiuri Shimbun, May 23, 2025)
NHK
14-05-2025
- Business
- NHK
Survey: Over 30% of Japan firms see profit drop for FY2025
Japanese companies' business results announcements have peaked. A survey shows about one-third of listed firms project lower profits for the current fiscal year than last year. SMBC Nikko Securities analyzed reports by 630 TOPIX-listed firms on the Tokyo Stock Exchange that had announced business results by Monday. SMBC Nikko says the combined net profit of the 630 firms came to over 34 trillion yen, or about 230 billion dollars. That's up 4.3 percent from the previous year in yen terms. For performance forecasts for fiscal 2025, the focus is on how much the impact of the US tariffs has been factored in. SMBC Nikko says about 57 percent, or 359 firms, expect a net profit increase, while 35 percent, or 224, see a decline. In particular, transport equipment sector companies, including automobiles, steel and marine transportation, project large drops. They cite higher costs and decreased trade due to the tariffs, among other factors. The analysis says 7 percent, or 44 firms, have not disclosed their projections. Many say the effects of the levies are still unclear. Yasuda Hikaru, chief equity strategist at SMBC Nikko Securities, says the impact on the real economy and corporate performance is yet to be quantified. He said: "I think we'll be able to see more specific tariff impacts when mid-term results come out in September. So upgrades or downgrades to projections are still possible." Yasuda says projections for now are not worse than expected despite the tariffs. The combined net profit forecast among the 586 firms that announced projections is 7.5 percent lower than last year's figure.
Business Wire
07-05-2025
- Business
- Business Wire
AVI Urges Wacom To Make Governance Changes
LONDON--(BUSINESS WIRE)--Asset Value Investors Limited ('AVI') launches a campaign calling for Wacom Corporation ('Wacom') to be more conscious of the capital market, and announces that AVI has submitted shareholder proposals ahead of Wacom's upcoming AGM in June. AVI has published a detailed presentation on a dedicated website. AVI invested in Wacom in August 2021 and has sought to engage in dialogue with the company as the largest shareholder, sending letters and presentations with the aim of improving corporate value in a sustainable manner. AVI is deeply concerned by the sluggish performance of the Branded Business segment, which has posted a cumulative loss of more than Y10bn since the fourth quarter of the fiscal year ended 31 March 2022. The company has fallen far short of its mid-term plan targets and significantly underperformed the TOPIX index over this period. Considering these circumstances, AVI has initiated a public campaign and submitted shareholder proposals at this year's Annual General Meeting with the aim of supporting the sustainable enhancement of corporate value. AVI's shareholder proposals this year include: Establishment of a Transformation Plan Supervisory Committee Appointment of one outside director with capital markets background Amendment to the Articles of Incorporation regarding the handling of acquisition proposals based on the 'Guidelines for Corporate Takeovers' by Ministry of Economy, Trade and Industry Kazunari Sakai, AVI Japan's Head of Research, commented: 'To improve alignment with investor expectations and shareholder interests, Wacom should go beyond the current Board's monitoring role by appointing directors with capital market experience, establishing a supervisory committee, and amending the Articles of Incorporation to align with METI's Guidelines for Corporate Takeovers.' 'Although the Branded Business segment continues to face challenges, we are confident that through shortening the product development cycle for entry-level products and strengthening e-commerce channels, Wacom can further reinforce its position as the global leader.' About Asset Value Investors (AVI): AVI is an investment management company established in London, United Kingdom, in 1985. AVI has invested in Japanese equities for nearly 40 years. AVI manages AVI Global Trust (AGT) and AVI Japan Opportunity Trust (AJOT) and other funds, collectively investing Y120bn into the Japanese market. AGT and AJOT are public companies whose shares are listed and traded on the main market of the London Stock Exchange.
Yahoo
25-04-2025
- Business
- Yahoo
Asia is winning the trade war—at least as far as stock markets are concerned
US futures were up this morning in early trading after the S&P 500 rose 2% on Thursday. That's nice but the broader global markets have spoken loud and clear ever since President Trump's 'Liberation Day' announcement on trade tariffs: Most Asian markets have performed way better than Western ones. Some, like Japan's TOPIX, are even in positive territory. Japan's TOPIX index is in positive territory for the past 6 months, up 0.37% for the period. It's an example of a global trend in the equity markets: The Asian indexes are performing much better than the major U.S. markets. India's Nifty 50 is within one percentage point of going positive over the same time period. The U.S.'s S&P 500, however, remains down 6% over that period, dragged underwater by the declining value of the dollar and the Trump Administration's war on free trade. Another example: Over the last 30 days, the Nifty 50 is up 1.7%; the S&P is down 5% in the same period. In the last 24 hours, however, there have been signs of fresh life in the U.S. The S&P 500, Dow, and Nasdaq were all up at least 1% at the close of the markets on Thursday as investors continue to hope that the Trump Administration will soften its trade agenda. Strong earnings, particularly from Google, American Airlines, Southwest, and Hasbro also helped drive gains. The good vibes continued in Asia and Europe this morning, and U.S. futures were in the green too. Here's a snapshot of today's action: The S&P 500 rose 2%, notching a third straight day of gains. (Reality check: It's still down 6.75% YTD.) The Nasdaq Composite was up 2.74% Palantir was up nearly 7%. U.S. futures contracts for the S&P were up 0.49% this morning, pre-opening bell. In Japan, the Nikkei 225 was up 1.9% this morning. Hong Kong's Hang Seng rose 0.3%. China's main indexes were flat/mixed. The Stoxx Europe 600 was up 0.35% in early trading. U.K.'s FTSE 100 was marginally positive this morning, up 0.15% in early trading. How damaging has the flight of capital out of U.S. markets been? Goldman Sachs put some number on that in a note to clients on the 'flight of foreign investors out of US assets,' sent yesterday by analyst Daniel Chavez and his team: 'This dynamic poses a substantial risk to equity valuations because foreign investors entered 2025 with a record 18% ownership share of US equities. We estimate foreign investors have sold roughly $60 billion of US stocks since the start of March. High frequency fund flow data suggest European investors have driven the selling, while other regions have generally continued to buy US stocks.' There is no mystery as to why investors have been moving their money East: It's Trump. In a typically arch note to clients this morning, UBS Global Wealth Management Chief Economist Paul Donovan wrote: 'China said it was not negotiating with the US over trade. US President Trump avowed that the US was talking with someone (who they are talking to is a secret, apparently). Things like this might possibly be contributing to the economically damaging levels of uncertainty.' This story was originally featured on Sign in to access your portfolio
