TOKYO - Japanese firms are cautiously optimistic about profit growth for the business year starting April, a Reuters survey reveals. While 11% predict over 10% net profit growth and 29% expect single-digit increases, concerns persist over the U.S.-Israeli conflict with Iran disrupting oil supplies. Japan relies heavily on Middle Eastern oil, leaving companies exposed to rising energy costs.
"Higher profit expectations stem from cost adjustments and strong orders," noted one executive. However, another warned that prolonged oil price spikes could erode profitability. The poll of 216 firms also found 76% anticipate yen-dollar exchange rates between 150-160. Meanwhile, debate continues over Prime Minister Sanae Takaichi's proposal to suspend food sales tax, drawing mixed reactions.