Japanese car makers sales are set to plunge, more so now after public protesting and calls for boycotting Japanese products broke out across China a fortnight ago. Violent outbreaks have occurred on the back of Japan buying a group of disputed islands in the East China Sea from private owners. Already Toyota Motor Corp Chinese sales have fallen approximately -40% to around +50k unitâ€™s last month on a y/y basis.
Prolonged sales losses are expected to affect upcoming profit forecasts for Japanese companies like Toyota and Nissan who rely on China to fulfill the biggest portion of their global sales. For every loser there is a winner. Expect neighboring South Korea to harvest the fruits of Japans efforts.
Already Hyundai Corporation has noticed its sales volumes increase dramatically, jumping +15% last month. The JPY is waging a war on its own, appreciating initially on rate differentials, however, the long Yen positions have been tested after a surprisingly strong employment report Friday.
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