Overseas political and economic instability and financial-market volatility

「Meanwhile, personal consumption showed some signs of caution as tensions in the Middle East drove up crude oil prices and high prices continued.」

「Steel products struggled, with shipments to Taiwan affected by deteriorating steel market conditions and shipments to South Korea affected by intensifying price competition with overseas shipping companies.」

「Regarding the outlook for the business environment in the next period, firm personal consumption is expected if real wages continue to improve in Japan, while labor shortages, shortages of raw materials and energy-price trends are expected to affect corporate earnings. Overseas, prolonged geopolitical risks, including policy developments in major countries, a resurgence of trade friction, and conditions in the Middle East and Ukraine, may affect international logistics and the global economy, leaving the outlook uncertain.」

「Shipments to China were sluggish amid intensifying competition, while shipments to South Korea and Taiwan also struggled, and the weaker yen was insufficient to offset the impact.」

「Although there was some rush demand related to exports in response to U.S. tariff policies, the situation remained one in which the company had no choice but to deal with tariffs of 15% or more, and the impact of tariff increases is expected to materialize in the future.」

「Toward the end of the fiscal year, conditions remained unstable amid difficult negotiations over ceasefires in Ukraine and the Middle East, as well as tariff policies and other measures by the new U.S. administration.」

「Meanwhile, geopolitical developments, including further escalation of tensions in the Middle East, the prolonged conflict in Ukraine, the outcome of the U.S. presidential election and economic-security regulations arising from the U.S.-China trade friction, are also concerns for the company, which handles import and export cargo for a broad range of customers in its port transportation, customs clearance and ocean shipping businesses.」

「During the third quarter of the current consolidated cumulative period, Japan's economy showed signs of improvement in corporate earnings as economic activity normalized against the backdrop of a recovery in personal consumption and stronger inbound demand following the easing of activity restrictions related to COVID-19 measures. Meanwhile, external factors, including soaring energy and raw-material prices resulting from the prolonged situation in Ukraine, the impact of global monetary tightening and stagnation in the Chinese economy, posed downside risks to the economy, leaving the outlook uncertain.」

「During the second quarter of the current consolidated cumulative period, Japan's economy showed a gradual improvement in business sentiment as personal consumption and inbound demand recovered following the lifting of activity restrictions related to approximately 3 years of COVID-19 measures. The easing of supply constraints on product materials, including semiconductors, supported a recovery in the production of various products, while corporate capital investment also increased steadily. Meanwhile, the yen depreciated again in foreign-exchange markets as monetary tightening continued in Europe and the United States, domestic inflationary pressure increased, and risks to the global economic outlook remained, including concerns over a downturn resulting from deterioration in China's property market and U.S.-China trade friction.」

「However, concerns remain that inflation caused by higher energy and raw material costs resulting from unstable global conditions, including Russia's invasion of Ukraine, could reduce consumption, leaving the outlook uncertain.」

「However, economic security policies have been strengthened in response to increasingly complex international conditions and changes in social and economic structures, including concerns about a prolonged Ukraine crisis and deepening tensions between the United States and China. Particularly in foreign trade, there are persistent concerns that restrictions on free and efficient corporate activity could disrupt logistics, while interest-rate hikes by major central banks in Europe and the United States and instability in the financial system could trigger a global recession that would spread to the domestic economy.」

「The outlook remains uncertain because of sharp exchange-rate fluctuations caused by changes in monetary policy in various countries and soaring raw material and energy prices due to the prolonged situation in Ukraine.」

「In the ocean-shipping business, exports of the main cargo on the Russian Far East route were suspended, but」

「However, the outlook remained uncertain as the yen depreciated sharply against the backdrop of rising US interest rates, energy and raw material prices soared, and geopolitical risks arising from Russia's military invasion of Ukraine also had an impact.」

「The geopolitical risk on the Russian Far East route, the company's main route, materialized when Russia invaded Ukraine in the middle of the fourth quarter.」

「The outlook remains uncertain because of external factors including the emergence of highly contagious variants, shortages of components such as semiconductors due to the economic recovery, and soaring resource prices.」

「At the global level, the impact of supply chain disruptions continued, and conditions remained such that a full-fledged recovery had not been achieved.」

「Although some signs of movement toward normalization of economic activity, such as a recovery in capital investment, were observed, the outlook remained uncertain.」

「During the third quarter of the current consolidated cumulative period, Japan's economy remained in a difficult situation. The spread of COVID-19 forced economic activity to stagnate or contract, resulting in a continued substantial decline in corporate earnings, deterioration in employment conditions and sluggish personal consumption. Although measures were being taken to prevent the spread of COVID-19, the situation remained unchecked, leaving the outlook uncertain.」

「During the first quarter of the current consolidated cumulative period, Japan's economy remained in an extremely difficult situation as social and economic activity was restricted to prevent the spread of COVID-19, causing consumption to contract substantially. After the state of emergency was lifted, economic activity resumed and an economic recovery led by the government was expected, but concerns remained over a second wave of COVID-19, leaving the outlook uncertain.」

「The outlook for the domestic economy remains uncertain, with concerns about external factors including rising tensions over the U.S.-China trade friction and the slowdown in overseas economies, particularly China.」

「However, business sentiment gradually deteriorated amid the intensification and prolongation of the U.S.-China trade friction, the resulting slowdown in overseas economies, the yen's further appreciation and the frequent occurrence of natural disasters in Japan.」

「However, the outlook remains uncertain because of unstable external factors affecting the global economy, including concerns about a prolonged U.S.-China trade friction and the slowdown in China's economy.」

「The outlook for the domestic economy remains uncertain, with concerns about external factors including the effects of chronic labor shortages, the prolonged U.S.-China trade friction and unstable conditions in Europe.」

「Meanwhile, the outlook remains uncertain because of external economic uncertainties, including higher raw material costs due to rising crude oil prices and the U.S.-China trade friction issue.」

「Concerns include a shift toward yen appreciation resulting from global economic instability and deterioration in the export environment due to trade friction.」

「The outlook for the domestic economy remains uncertain, with concerns about the impact of external factors such as the United States' protectionist policy trends and geopolitical risks surrounding North Korea.」

「However, political and economic developments overseas, particularly in Europe and the United States, remain unstable, and the increasing uncertainty has raised concerns about volatility in financial markets, leaving the outlook uncertain.」