The weakening yen boosts the performance of Japanese multinational companies, with 159 companies raising their fiscal year forecasts.

(1) The continued weakening of the yen is bringing significant business benefits to Japanese multinational companies, with many firms raising their performance forecasts in the latest earnings season. (2) Despite recent intervention measures taken by the Japanese government, the market expects the yen to remain under pressure. Companies with a high proportion of overseas business—including Toyota, Honda, Sony, and Ryohin Keikaku, the parent company of MUJI—have all raised their performance expectations. (3) According to a report from Okasan Securities, out of approximately 1,600 constituent companies in the TOPIX index, 159 companies have raised their full-year earnings forecasts since July 1, while only 12 have lowered theirs. The overall ratio of revised performance forecasts has reached 86%, the highest level since the 2016 fiscal year.