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Japan Cuts FY2026 Profit Forecast to -6.5% in Latest Tankan Survey, Down from -2.4% Prior

2026-07-01 02:51:16

According to economist Ryosuke Katagi of Mizuho Securities, Japanese enterprises showed resilience in profit forecasts despite global geopolitical risks. Japan's central bank Tankan survey released on Wednesday showed all industries and firm sizes now expect ordinary profit for the fiscal year to decline 6.5%, revised down from a prior March forecast of -2.4%. Katagi said the revision aligns with normal seasonal patterns and mirrors June 2025 predictions, indicating Middle East tensions have not yet materially impacted earnings outlooks.

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