“Toyota Motor Corp. (7203), the world’s largest carmaker, counts on the Camry sedan and the Prius hybrid to outsell other automakers. For profits, it’s counting on Prime Minister Shinzo Abe and his campaign to cheapen the yen.
“Ever since the new government took control, it feels as though Japan is filled with the spirit for economic revival,” Toyota Senior Managing Officer Takahiko Ijichi said in a briefing in Tokyotoday. “Some say that they can’t feel any real substance in the whole ‘Abenomics’ phenomenon, but as a result, it’s weakened the yen and boosted stock prices.”
Toyota, which today raised its profit forecast to a five- year high, is leading the revival of Japan Inc. (NKY) as the weakening local currency attracts investors and drives up stocks to levels last seen in 2008. Behind the recovery is the new prime minister, whose calls for monetary easing have helped the yen weaken against all other currencies since mid-November, making Japanese products from cars to vacuum cleaners more profitable overseas.
“Abenomics has proven to be a great plus to Japanese companies,” said Masayuki Kubota, who helps oversee the equivalent of $1.8 billion at Daiwa SB Investments Ltd. in Tokyo. “The biggest result we’re seeing is in the foreign exchange and stock market.”
Japan’s biggest manufacturer raised its forecast for net income in the year ending March by 10 percent to 860 billion yen ($9.3 billion). Toyota climbed as much as 2 percent in German trading after the company reported earnings following the close of trading in Tokyo, where the stock dropped 1.2 percent to 4,540 yen….”
If you enjoy the content at iBankCoin, please follow us on Twitter
