[Japanese Stocks] Two large-cap, high-quality stocks with global appeal that could see their share prices rise: Toyota Motor, with strong earnings power and a high dividend yield, and Mitsubishi Heavy Industries, buoyed by expanding defense budgets

The feature in the October issue of Diamond ZAi highlights Toyota Motor and Mitsubishi Heavy Industries as large-cap, high-quality stocks expected to see their share prices rise. Based on data as of 3 August, the article introduces both companies' earnings trends and other factors relevant to investment decisions. Toyota Motor posted lower profit in the previous fiscal year due to tariff impacts, but Lexus sales rose 2%, while its core hybrid vehicles also recorded growth.

Mitsubishi Heavy Industries is expected to benefit from medium- to long-term demand growth centered on its aerospace, defense and space businesses, supported by expanding defense budgets. Growth in energy-related demand and demand from data centers is also cited as a factor supporting the business. The article introduces analysts' view that demand for strengthening defense capabilities will not decline even if the administration changes.

The feature also introduces promising stocks by category, including AI and semiconductor stocks, high-dividend stocks and shareholder-benefit stocks, in addition to the large-cap, high-quality stocks covered by Diamond ZAi, and is structured to examine the market outlook. It also discusses the launch of the digital edition and additional content available in the magazine, outlining the benefits of subscribing.

The latter half of the article provides information on the special supplement and related features in the October issue of Diamond ZAi, encouraging readers to use them as sources of information beyond the 11 stocks. It concludes with information on purchasing the magazine and content available in the electronic edition, outlining the ways readers can obtain it.