TOKYO : The weak yen was once a cause for celebration for Japanese companies, as they could sell cars and cameras cheaper abroad and enjoyed fatter profits when earnings were brought home.After years of bolstering overseas production and supply chains, Japan's manufacturers now see less benefit from a softer currency, company officials and economists say.
A December survey of nearly 7,000 companies by data and research firm Tokyo Shoko Research found that almost 30per cent of companies said a weak yen was a negative for their business, while 5per cent said it was a positive. The remaining 65per cent said it was neither a negative or a positive. Even though there may be concerns about producing in certain markets - such as China - it seems unlikely that the trend toward offshore production will reverse in any meaningful way soon.
But he looks increasingly alone in his emphasis on the positive, as government officials have increased their warnings against excessive yen declines.