In the last few weeks, optimism about trade has prevailed. It has risen by more than 21% since April’s bottom at Y=30.770, and entered a bull market. The index is hovering around its highest point since March 27. It’s one of the best-performing indices.
Next week, some of Japan’s top companies will publish their results. In the past, when companies publish results, there has been a mix of performance for the index. This article highlights the best Nikkei index companies.
Japan’s earnings season is accelerating
Earnings by the top companies of the Nikkei will have the biggest impact on the Nikkei Index.
Suzuki Motor and Mazda Motor will give more insight about tariffs and their impact on the industry. Asahi Group and Shiseido will also release numbers.
Softbank, Honda Motors, Resona Holdings Nissan and Olympus are the top five companies you should be watching on Tuesday. Sony, Sumitomo Mitsui Nippon Paint Kyocera and Isuzu Motors are among the companies that will be publishing on Wednesday.
Mitsubishi UFJ Mizuho Financial and Japan Post are the main Nikkei 225 index companies who will be releasing their results Thursday and Friday. Bridgestone, Yokohama and Yokohama.
Softbank is notable as one of Nikkei’s 225 largest companies. Management will be called upon to invest $40 billion into a single OpenAI company.
Donald Trump’s tariffs will put automakers such as Honda, Nissan and Isuzu in the spotlight due to the effect on their business.
Trade talks between the US and Japan
Any breakthrough between Japan and United States will also be a catalyst for Nikkei’s 225 index. Japan is asking the US to lift the so-called “retaliatory” tariffs that Trump believes will lower the trade gap.
Recent data released showed that Japan’s surplus in trade with the US soared to more than $65 billion by 2025. This angered Trump who believes deficits are bad.
The US has been unable to reach a deal on trade with Japan due to a few issues. Japan, for example, has refused to allow the US access to Japan’s agricultural sector and rice. Japan does not want to remove tariffs from imported US rice.
Japan also does not want to commit a large amount of money in the long-delayed LNG project, worth $44 billion in Alaska. Trump hopes such an investment will help Japan reduce its trade deficit.
As many Japanese companies have a large presence in the US, a trade agreement would benefit the Nikkei Index.
Nikkei will react as well to certain Japanese economic data. The statistics agency, for example, will release the most recent GDP data Wednesday. This shows whether or not the economy has grown in the first three months.
Other top statistics will include Japan’s Industrial Production and Producer Price Index (PPI).
Nikkei 225 Index analysis
Nikkei 225 Index | Chart by TradingView
Daily chart showing that Nikkei Index reached its lowest level at Y=30.811 after Trump announced his tariffs on other countries including Japan in April. The index has now risen above the resistance level of Y=35970. Its lowest point was on March 11, when Trump announced his tariffs against other countries, including Japan.
Index has moved over the 100-day and 50-day Exponential Moving Averages, while Relative Strength Index is all pointing upwards. The index is likely to continue its upward trend as bulls aim for the important resistance level of Y=40,000 which is approximately 7.30% higher than the current level.
The post Nikkei forecast: Sony Softbank Honda Rakuten Mitsui Mitsui Earnings on Tap may be updated as new information unfolds
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