Japanese businesses are among the top contributors to global GDP. Despite the fact that the COVID-19 outbreak hindered Japan’s export-dependent economy. After an outstanding vaccination rollout in Japan and other major countries, Japanese stocks are steadily recovering. Japan’s annualized GDP declined by 3%, versus an expected 0.8 percent drop. Domestic demand was responsible for a 0.9 percent reduction in GDP during July-September, as consumption fell 1.1 percent. Analysts predict that Japan’s economy would grow at a rate of 5.1 percent on an annualized basis this quarter. Due to chip shortages and supply chain bottlenecks, Japan lost 2.1 percent of its exports from July to September. It won’t be until the second half of 2023 that real GDP reaches pre-pandemic levels. The current valuation of these international firms may present good entry points.
Insider Monkey selected the top Japanese stocks based on mostly positive news surrounding each company. Nissan Motor Co., Ltd. is a multinational automobile manufacturer headquartered in Yokohama, Japan, that owns three vehicle brands: Nissan, Infiniti, and Datsun. The automaker had a market capitalization of $19.27 billion as of December 1. Panasonic Corporation is a major Japanese company that manufactures consumer electronics, rechargeable batteries, automotive and avionic systems, and industrial equipment. Panasonic Corporation released its September financial results on October 28, exceeding predictions by $0.02. Mitsubishi Electric Corporation is a global electronics and electrical equipment manufacturer based in Japan. The net profit for the quarter was 104.8 billion dollars, while revenue was 2138.3 billion dollars, up 12 percent year over year. Mizuho Financial Group, Inc. is a Tokyo-based bank holding corporation whose principal subsidiary, Mizuho Bank, operates in the United States. In the quarter ended December 31, earnings increased by 79 percent to 385.7 billion yen, exceeding projections by $0.09. Mitsubishi Corporation is Japan’s largest trading firm, with subsidiaries in various industries. Mitsubishi Corporation was upgraded to Buy from Neutral by Mizuho analyst Kanako Mizuno, who set a price target of 4,200 yen. For more details, click 10 Best Japanese Stocks To Buy Now.