Toyota Tsusho shares rose 2% amid turbulent trading in the Nikkei 225, as the company’s earnings base in Africa and steady profit growth drew investor approval. There is also speculation that investor interest will increase in overseas-demand stocks that are resilient to currency fluctuations.
Interest is growing in overseas-demand stocks that are resilient to currency fluctuations, with Toyota Tsusho cited as a leading example. It has been pointed out that the company’s shares can rise against the market even when the Nikkei 225 falls sharply at times.
Toyota Tsusho has built a stable earnings base centered on the African market, and its continued steady profit growth is viewed as a positive factor. Expectations are spreading that the company can maintain its growth potential even when the yen strengthens.
In the latest market move, Toyota Tsusho traded approximately 2% higher on the 11th while the Nikkei 225 declined. It has been pointed out that the company is also gaining a stronger position among professional investment managers as an overseas-demand stock.
The market as a whole may be showing signs of easing concern about the risks of a stronger yen, but the view has been expressed that corporate growth potential will be the key to breaking the yen’s strong-exchange-rate curse. There is also a view that expanding earnings at overseas-demand companies will ease the Japanese stock market’s overall concern about a stronger yen.