Osaka Gas’ earnings are expected to improve while the yen remains strong. The view is that timing-gap gains will add to the uptrend in ordinary profit excluding foreign-exchange effects.
As the yen strengthens in the foreign-exchange market, lower import costs could boost corporate earnings, while exporters could face headwinds. The issue for individual investors is how to view stocks that could benefit from a stronger yen.
Movements in monetary policy in Japan and the United States are driving the yen, with the Bank of Japan’s interest-rate policy and expectations for US rate hikes at the center of market attention. The outcome of upcoming meetings and movements in market interest rates are expected to affect the sustainability of the yen’s strength and the possibility of a reversal.
Osaka Gas is cited as a stock whose earnings could improve as the yen strengthens. The article explains how the company could benefit from a stronger yen and notes that companies with a high proportion of domestic sales could enjoy a tailwind.
USD/JPY is moving mainly in the ¥153–159 range, with the possibility of a correction to the low ¥150s or a recovery to the ¥160s depending on the outcome of the US central bank’s September event.