Japan Earnings Beating Expectations Point to Rally Going Further

More and more Japanese companies are beating earnings expectations on growing AI demand, the smaller-than-expected impact of tariffs and the weak yen, in a sign the rally in equities can go further.

Of the more than half of the Topix companies that have announced their quarterly earnings, almost 60% have beaten average analyst estimates by stocks covered by at least two analysts, data compiled by Bloomberg showed. It’s the highest ratio of upside surprises for the companies that have announced for the second quarter since 2020, according to an analysis by Okasan Securities Co. as of Nov. 7.

That’s underscoring ...