Japanese Companies Maintain Conservative Outlook Amid Middle East Concerns

As Japan's earnings season begins, concerns over the impact of the Middle East conflict may lead companies to maintain conservative performance forecasts. According to Jin10, a survey by Teikoku Databank revealed that only 23.9% of Japanese companies expect an increase in revenue and profits for the fiscal year ending March 2027. This marks the third consecutive year of decline in the number of companies predicting growth. The survey highlighted that a hotel operator is worried about the escalating situation in the Middle East, which could trigger a vicious cycle of soaring oil prices, rising inflation, and yen depreciation, further driving up costs.