Japanese companies are headed toward their highest profits ever, as the falling yen boosts exporters from Toyota Motor Corp. to Uniqlo-operator Fast Retailing Co.
Aggregate net income at 195 of the largest listed companies will expand 10 percent to a record ¥17.5 trillion this fiscal year, based on some analyst estimates. Executives are catching up to such lofty expectations, with Toyota this week raising its profit forecast to an unprecedented ¥2 trillion.
As the earnings season winds down in Japan — almost all companies will have reported results by next week — exporters are emerging as one of the biggest beneficiaries of Prime Minister Shinzo Abe's economic policies. For investors, the weaker currency is outweighing slumps in wages and local consumption, prompting them to push up the Nikkei 225 average to levels last seen seven years ago.