Japan Earnings Beating Expectations Point to Rally Going Further
The AI wave is lifting some Japanese companies, such as Yaskawa Electric Corp. Shares in the maker of robots used by Unilever Plc and Ford Motor Co. surged 19% after its second-quarter earnings last month showed AI-related demand driving growth in its AC servo motors.
Photographer: Kiyoshi Ota/BloombergMore and more Japanese companies are beating earnings expectations on growing AI demand, the smaller-than-expected impact of tariffs and the weak yen, in a sign the rally in equities can go further.
Of the more than half of the Topix companies that have announced their quarterly earnings, almost 60% have beaten average analyst estimates by stocks covered by at least two analysts, data compiled by Bloomberg showed. It’s the highest ratio of upside surprises for the companies that have announced for the second quarter since 2020, according to an analysis by Okasan Securities Co. as of Nov. 7.