The depreciation of the yen has released a windfall, leading to a wave of performance upgrades among Japanese companies.

According to reports, the weakening yen is bringing significant business benefits to Japan's multinational companies, with many firms raising their performance forecasts in the latest earnings season. Despite recent intervention measures by the Japanese government, the market expects the yen to remain under pressure. Therefore, companies with a high proportion of overseas operations, such as Toyota, Honda, Sony, and Ryohin Keikaku Co., Ltd., the parent company of Muji, have all raised their performance outlooks. According to a report from Okasan Securities, among approximately 1,600 constituent companies in the Tokyo Stock Exchange Index, 159 companies have raised their fiscal year performance expectations since July 1, while only 12 companies have lowered theirs. The overall adjustment ratio for performance expectations has reached 86%, the highest level since the 2016 fiscal year.