Expectations for good financial results are high due to the depreciation of the yen! There is room for improvement in various export brands such as Toyota, Komatsu, and Nintendo

The depreciation of the yen progressed, and the dollar-yen exchange rate on the 29th hovered in the $1 = 146 yen range. The background is that the outlook that high interest rates in the US will continue for the time being spread based on Fed Chairman Powell's speech at the Jackson Hole meeting, and the interest rate difference between Japan and the US was once again aware.
According to Bloomberg, the Goldman Sachs Group predicts that “if the Bank of Japan maintains a dovish attitude, the yen will add 1 dollar = 155 yen in the next 6 months.” 1 dollar = 155 yen is equivalent to the depreciation level of the yen since 1990/6.

Export-related stocks will benefit from the depreciation of the yen progressing. Already in the first quarter financial results, the depreciation of the yen contributed to a rise in business performance for stocks with a high overseas sales ratio. It can also be seen from the financial results briefing materials of the 10 major companies with high overseas sales ratios that they have greatly benefited from exchange rates.

According to the Nihon Keizai Shimbun, out of 68 major companies that disclosed exchange rate effects of financial results for the fiscal year ending 2023/4/6, etc., 90% of companies benefited in the direction of profit increase, and the increase in profit due to exchange accounts for 50% of the overall operating profit increase.
The average exchange rate for the fiscal year ending 2023/4/6 was around 1 dollar = 137 yen, but many companies have not changed the expected exchange rate while remaining around 130 yen. After the second quarter, when the depreciation of the yen has progressed by about 9 yen since the first quarter, it seems that we can expect to receive further benefits.