-- Japanese firms face a dimmer earnings outlook after the collapse of US-Iran peace talks drove oil prices higher, Bloomberg reported Monday, citing analysts.
Chemical makers and other oil-dependent industries face acute vulnerability as the Strait of Hormuz blockade affects over 90% of Japan's crude imports, the news wire said.
The surge in oil prices has prompted Nomura's (TYO:8604) Nomura Securities to lower its earnings forecasts for major firms, including Kao (TYO:4452) and Unicharm (TYO:8113), the publication said.
Meanwhile, retailers have adopted a cautious stance: budget Italian chain Saizeriya (TYO:7581) cut its full-year profit guidance, and Aeon (TYO:8267) warned about soaring energy and logistics expenses, according to the report.
Equity analysts downgraded earnings forecasts for Topix 500 companies in 113 cases last week, marking the first time since July that downgrades have outnumbered upgrades, the news outlet reported.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)