What are tariffs and how might they affect these Japanese companies?

Tariffs are taxes imposed on imported goods. The theme mentions a potential 25% U.S. tariff on automobiles, which would directly impact Japanese automakers like Toyota and Honda by making their vehicles more expensive in the U.S. market. However, these companies have demonstrated resilience through production efficiencies, global manufacturing footprints, and technological advantages that may help offset some tariff impacts. The non-automotive companies in this collection, like robotics and machinery manufacturers, may be less directly affected by auto-specific tariffs.

What is factory automation and why is it important for these stocks?

Factory automation refers to the use of technology to automate manufacturing processes, including robotics, control systems, and information technologies. Many companies in this collection, like Fanuc and Yaskawa, are leaders in this field. Automation is increasingly important as manufacturers worldwide face labor shortages and rising costs. These Japanese specialists provide the technology that helps factories increase efficiency, maintain quality, and reduce costs - making them potentially valuable regardless of economic cycles and positioning them to benefit from the global trend toward more automated production.

What does "factory output" mean and why does it matter?

Factory output measures the total production from manufacturing facilities during a specific period. It's a key economic indicator that reflects industrial health and often signals broader economic trends. The recent growth in Japan's factory output, especially in production machinery and motor vehicles, suggests these sectors are performing well despite challenges. For investors, rising factory output often indicates increasing sales, potentially higher profits, and growing demand for the companies in this collection, making it an important metric to watch when considering these stocks.

What is "market cap" in the stock data?

Market capitalization (or "market cap") is the total value of a company's outstanding shares of stock. It's calculated by multiplying the current stock price by the total number of shares. Market cap helps you understand a company's size - larger market caps (like Toyota's) typically indicate more established, stable companies, while smaller market caps might suggest more growth potential but also higher risk. When exploring the stocks in this collection, market cap gives you perspective on each company's relative size and position within the Japanese industrial landscape.

2 handpicked stocks

Japan's Resilient Factories

Japan's core manufacturing sectors are demonstrating remarkable resilience despite global economic headwinds. This collection features carefully selected industrial powerhouses, from leading automakers to robotics specialists, that our analysts believe are positioned to thrive even in uncertain trade conditions.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

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Toyota Motor Corporation

Current price

$190.52

A leading Japanese automaker whose production growth was a key driver of the May factory output increase, demonstrating resilience against tariff thre...

A leading Japanese automaker whose production growth was a key driver of the May factory output increase, demonstrating resilience against tariff threats.

Honda Motor Co., Ltd.

HMC

Current price

$30.55

A major Japanese automaker whose rebound in vehicle production highlights the core strength of the sector despite external trade pressures.

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+18.73%

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About This Group of Stocks

Our Expert Thinking

Recent data shows Japan's factory output growing in key sectors like production machinery and motor vehicles, despite global economic challenges. We've identified companies at the heart of this manufacturing rebound that combine technological sophistication with the resilience needed to navigate trade pressures and meet sustained global demand.

What You Need to Know

This collection offers targeted exposure to Japan's industrial strength through companies directly contributing to the manufacturing recovery. While these stocks may face headwinds from potential tariffs, particularly in the auto sector, they represent businesses with the efficiency and innovation to potentially outperform despite trade tensions.

Why These Stocks

We've selected companies that form the backbone of Japan's industrial economy: leading automakers, factory automation specialists, and critical component suppliers. Each business was chosen for its direct contribution to recent manufacturing growth and its strategic position in resilient sectors like production machinery and vehicles.

Group Performance Snapshot

18.73%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 18.73% over the next year.

2 of 2

Stocks Rated Buy by Analysts

2 of 2 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏭

Defying Economic Gravity

While global trade tensions create uncertainty, these Japanese industrial companies have shown they can maintain growth even when others struggle. Their recent factory output increases signal underlying strength worth watching.

🤖

Automation Champions

Many companies in this collection are quietly powering the global factory automation revolution. As labor costs rise worldwide, these robotics and machinery specialists are positioned at the forefront of a major industrial shift.

🚗

Beyond Tariff Worries

Despite tariff threats against Japanese automakers, these companies have demonstrated remarkable resilience. Their ability to adapt production and maintain output suggests they may weather trade pressures better than expected.

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