After the sharp fall in share prices in July, the market shifted to an upward trend on strong earnings from semiconductor-related companies. ADVANTEST’s upward revision to its earnings outlook drove the market higher, and TOPIX set new highs again. The number of companies announcing upward revisions reached 95.
After the Nikkei 225 plunged in July, the market began to recover, led mainly by semiconductor-related stocks. In particular, ADVANTEST’s upward revision announced between July and August, which raised its operating profit outlook by 34.8% from the figure announced in April, attracted market attention.
In tandem with this move, buying spread beyond semiconductor-related stocks, including ADVANTEST, to a broad range of issues, and the market continued to recoup the Nikkei 225’s losses. TOPIX set new record highs multiple times from 10 August onward.
An analysis by SMBC Nikko Securities showed that net profit forecasts for 555 companies with March year-ends had been revised sharply upward, indicating a 27.9% increase from the previous fiscal year. This has heightened expectations for an improvement in earnings across the market.
The number of companies that disclosed upward revisions this time reached 95, and the large number of upward revisions in the current fiscal year suggests that corporate earnings are performing well. In considering the market’s future direction, some analysts believe that focusing on stocks that have raised their earnings outlooks may be an effective strategy.