Mizuho Securities economist Ryosuke Katagi said despite global geopolitics
risks Japanese corporate profit plans remain resilient. Wednesday’s BOJ Tankan
showed firms across all industries and sizes expect recurring profit to decline
6.5% in the current fiscal year, versus a 2.4% decline forecast in the March
survey. Katagi said the revision reflects normal seasonality and aligns with the
June 2025 projection for the prior fiscal year, suggesting the Middle East
conflict has not yet materially affected profit prospects. "These revisions
warrant close attention because this fiscal year's corporate profits will affect
2027 spring wage negotiations," he added.
