Japanese media report the weaker yen is providing a material tailwind to
multinational exporters, prompting a wave of fiscal-year earnings upgrades this
reporting season. Despite government recent FX intervention, markets expect the
yen to remain under pressure. Export-heavy firms including Toyota Motor, Honda
Motor, Sony and Muji parent Ryohin Keikaku have raised profit prospects. Okasan
Securities says that among TOPIX’s roughly 1,600 constituents, since July 1, 159
firms have upgraded fiscal-year forecasts and 12 have cut them; the overall
forecast-revision ratio reached 86%, the highest since FY2016.
