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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)
Nikkei Asia
13-05-2025
- Automotive
- Nikkei Asia
Japan stocks close higher as investors welcome US-China trade truce
TOKYO -- Stocks closed higher in Japan on Tuesday following an agreement between the U.S. and China to temporarily lower tariffs they have imposed on each other's exports, easing investor concerns about an escalating trade war. The benchmark Nikkei Stock Average at one point rose more than 800 points, or 2%, and touched its highest intraday level in over a month before closing up 1.4% at 38,183.26. The gains were led by banks, marine shipping and pharmaceuticals. Some exporters, including automakers like Toyota Motor, also jumped. The broader Tokyo Stock Price Index also advanced 1%, while futures on the Osaka exchange were up more than 2% during the morning.
Nikkei Asia
13-05-2025
- Business
- Nikkei Asia
Japan stocks jump 2% as investors welcome US-China trade truce
TOKYO -- Stocks roared back to life in Japan on Tuesday morning following an agreement between the U.S. and China to temporarily lower tariffs they have imposed on each other's exports, easing investor concerns about an escalating trade war. The benchmark Nikkei Stock Average at one point rose more than 800 points, or 2%, and touched its highest intraday level in over a month. The gains were led by banks, marine shipping and exporters, including automakers. The broader Tokyo Stock Price Index also jumped close to 2%, while futures on the Osaka exchange were up more than 2%.
Forbes
31-03-2025
- Business
- Forbes
Global Markets And US Futures Tumble After Trump Says Tariffs Will Hit ‘All Countries'
Global stock markets and U.S. futures tumbled on Monday as investors around the world braced for President Donald Trump's plans to impose sweeping reciprocal tariffs against 'all countries' starting April 2—a day he and his allies have dubbed 'Liberation Day.' In Japan, the Nikkei 225 index fell more than 4% to 35,617.56 points on Monday, while the Tokyo Stock Price Index (TOPIX) dropped more than 3.5% to 2,658.73 points. China's Shanghai Composite Index dropped nearly 0.5%, while the Hong Kong-based Hang Seng Index fell 1.3%. South Korea's benchmark KOSPI index was down 3%, Australia's ASX 200 slid 1.7% and India's Sensex dropped 0.25%. European stocks were also hit, as the London Stock Exchange's flagship FTSE 100 Index was down 1.19% in morning trading, while the pan-European EURO STOXX 50 was down 1.76%. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here. U.S. stock futures were also in the red during premarket trading early on Monday, with the tech-centric Nasdaq futures being the worst hit and falling 1.3% to 19,204.75 points. The benchmarked S&P 500 futures were down nearly 1% to 5,570.75 points, while Dow Futures dropped 0.6% to 41,590 points. Speaking to reporters onboard Air Force One on Sunday, Trump suggested there will be no exceptions when it comes to his reciprocal tariffs. When asked if he was planning to start imposing reciprocal tariffs on around 10 to 15 countries first, Trump said no, adding: 'You'd start with all countries, so let's see what happens…We've been talking about all countries, not a cutoff.' The president then said 'We're going to be much nicer than they were to us,' but added that the levies will still be a 'substantial' amount. In an interview with Fox Business last week, the White House's top economic adviser, Kevin Hassett, said there were more than 100 countries that 'don't really have any tariffs on us and don't have any non-tariff barriers,' but there were 'probably about 10 to 15 countries that account for the entire trillion dollar trade deficit, and they have both non-tariff barriers and big tariffs.' Hassett did not name the countries, but his remarks echoed Treasury Secretary Scott Bessent's comments about the so-called 'dirty 15' countries, which have 'substantial tariffs' on U.S. goods. Without specifying their names, Bessent said the reciprocal tariffs will hit those group of countries the hardest. The president has promised to unveil his reciprocal tariff measures on Wednesday, and both he and his allies have hyped the day up on social media as America's 'Liberation Day.' In all-caps post on Truth Social last week, Trump hyped up 'Liberation Day,' saying: 'FOR YEARS WE HAVE BEEN RIPPED OFF BY VIRTUALLY EVERY COUNTRY IN THE WORLD, BOTH FRIEND AND FOE…BUT THOSE DAYS ARE OVER.' Trump Says He'll Be 'Lenient' On Reciprocal Tariffs: Here's What To Know As 'Liberation Day' Looms (Forbes) Trump Threatens More Tariffs If EU Works With Canada To Cause 'Economic Harm' To US (Forbes) One Community. Many Voices. Create a free account to share your thoughts. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. In order to do so, please follow the posting rules in our site's Terms of Service. We've summarized some of those key rules below. Simply put, keep it civil. Your post will be rejected if we notice that it seems to contain: User accounts will be blocked if we notice or believe that users are engaged in: So, how can you be a power user? Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's Terms of Service.
