Earnings slump, increased risk of cooling down Japanese stocks - the number of missed financial estimates is the highest in the past 3 years.

November 13, 2024 9:15 JST (excerpt)
The companies with upward revisions of full-year forecasts account for only about 21%, below the average of the past 10 years.
Underlying the concerns about the upcoming Trump administration, the difficulties in the automobile sector are prominent.

Since this summer, there was anticipation among some investors that the July-September period of corporate earnings would be the trigger for the resumption of Japanese stocks that have been stagnant. However, contrary to expectations, the results were unexpectedly weak, with the potential for tariff activation by the upcoming Trump administration in the USA and the risks of domestic political instability caused by the minority ruling party overlapping. This did not become the savior of the market.
According to Bloomberg data, as of the 12th when nearly 80% of the stocks listed on the Tokyo Stock Price Index (TOPIX) had completed their earnings reports for the July-September period, 58% of them fell below analysts' financial estimates, the highest level in the past three years.

November 13, 2024 9:48 AM JST (excerpt).
Activist funds emerge as major shareholders, increasing the pressure.
Nissan's longer average car age is prominent compared to competitors, with experts noting the lack of new car releases in both Japan and the USA.