Rising Oil Prices Prompt Japanese Equity Analysts to Lower Corporate Earnings Forecasts
Deep News
Apr 13
As the breakdown of peace talks between the United States and Iran drives up crude oil prices, Japanese companies are facing a dimming earnings season. By last Thursday, equity analysts had lowered profit expectations for 113 companies listed in the Topix 500 index. This marks the first time since July that downward earnings revisions have outnumbered upward adjustments. With the Strait of Hormuz largely closed—a waterway that handles over 90% of Japan’s crude oil imports—Japanese chemical firms and other industries heavily reliant on petroleum face significant risks. Soaring oil prices have already led Nomura Securities to cut earnings forecasts for several corporations, including Kao Corp. and Unicharm Corp.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.