Japanese Listed Industries’ ROE Stalls Despite Record Profits as Weak Yen Boosts Overseas Equity Values

ROE pressure stems from heightened valuations of overseas subsidiaries

General trading corporations such as Itochu and Mitsui & Co. experienced pronounced translation adjustments on overseas investments—including the N‑Yandi iron mine in Australia—to boost shareholders’ equity. (Itochu/Mitsui & Co.)

RISA ANDO

September 8, 2026 03:12 JST

Tokyo — Although many Japanese listed firms posted record profit figures, return on equity deteriorated in the fiscal year ended March because a weakening yen increased the market value of overseas subsidiaries, thereby expanding shareholders’ equity bases.

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