Japan is emerging as the star of Asia's latest earnings season, with most companies reporting higher-than-expected profit growth as businesses continue to benefit from Prime Minister Shinzo Abe's economic policies.
Earnings per share, excluding some items, at 159 companies on Japan's Topix index have beaten analyst estimates while only 97 missed, according to data compiled by Bloomberg. By comparison, in the MSCI Asia Pacific index that excludes Japan, only 74 companies topped projections versus 96 that fell short.
As red flags keep sprouting in China, no other major Asian market is looking as healthy as Japan. A stock market boom is helping Tokyo-based banks reap higher profits and the weak yen continues to bolster earnings for exporters such as Toyota Motor Corp., which on Tuesday reported record quarterly profit of $5.2 billion.