Oil market swings top earnings threat for Japanese firms, survey shows

According to one outlet Research poll of 215 anonymous Japanese firms, volatility in the global crude oil market tops the list of earnings risks, with 37% of participants selecting it as their primary concern. Foreign-exchange volatility (21%) and higher interest rates (19%) follow closely behind. Respondents link soaring energy costs to the ongoing US-Israeli conflict with Iran, which has tightened supply and pushed up prices for oil-derived inputs such as auto parts and construction materials.

The Bank of Japan’s recent rate hike to a 31-year high has prompted worries about slowing real-estate demand and reduced domestic consumption. Additionally, several companies flag uncertainty over the longevity of AI-related investment, noting possible constraints from power limits, stricter regulations and rising costs. The poll also reveals mixed earnings expectations for one outlet fiscal year, with roughly a third expecting results to exceed forecasts and a similar share anticipating they will meet or fall short of projections.