Energy Prices Underpin Strong Outlook for Japan’s Trading Houses

Japan’s big five trading houses are set to benefit from war-related supply disruptions this year, with higher energy and metals prices driving stronger earnings.

Mitsubishi Corp. forecast net income could rise 37% in this fiscal year to ¥1.1 trillion ($7 billion), thanks to its gas and copper businesses. Sumitomo Corp. cited copper and coal as key to a forecast increase in its bottom line above analyst estimates. Shares of both surged on Friday, with Sumitomo closing up 17% at an all-time high.