A succession of strong earnings reports from capital investment-related companies has drawn attention to the prospect of broader recognition for Japanese machine stocks. Upward revisions to global economic growth forecasts and growth in domestic and overseas machine tool orders have been cited as the main factors.
Against a backdrop of solid global economic conditions, the OECD raised its global growth forecast, and the IMF also revised its growth outlook upward. This has heightened expectations for the machinery industry, regarded as a leading indicator of capital investment.
Japan's machine tool orders totaled ¥223.2 billion in September on a finalized basis, up 60.4% year on year and exceeding the year-earlier level for the 15th consecutive month. With overseas orders accounting for the majority of the total, interest is growing in earnings announcements from related companies.
In the second quarter of Yaskawa Electric's fiscal year ending February 2027, revenue rose 9.8% year on year and ordinary profit increased 3%. Meanwhile, orders remained firm, fueling expectations for earnings from machine stocks with fiscal years ending in March.
SMC's revenue rose sharply to ¥270.987 billion and net profit to ¥67.863 billion in the first quarter of the fiscal year ending March 2027. Expanding capital investment demand related to semiconductors and electrical equipment, as well as demand for AI applications, provided a tailwind.