Strategist: Japanese companies can remain resilient even with oil prices at $90

Golden Ten Data reported on March 17 that Masayuki Kubota, a strategist at Rakuten Securities in Japan, stated that if oil prices remain around $90 per barrel, Japanese companies' willingness for capital expenditure and private consumption are likely to stay strong. In this scenario, since the negative and positive effects (of rising energy costs) will offset each other, the drag on corporate profits will be limited. He believes that under these circumstances, there is no need to revise his forecast for net profit growth of over 15% for companies listed on the Tokyo Stock Exchange Main Board Market for the fiscal year ending March 2027.