Toyota shares surge 15% on record profit despite lower sales

Toyota's stock rose approximately 15% in Japanese trading, its largest daily gain since October 1987. The company increased its full-year profit target after raising operating profit by 35% to $7 billion in the last quarter, the first increase in six quarters. This growth occurred despite lower vehicle sales, particularly in China where Toyota lowered its sales target due to competition from local manufacturers. The profit boost was driven by a weak yen, strong demand for hybrid vehicles in the US, and cost reductions offsetting material costs and Trump's tariffs. Toyota also announced a strategic shift to select suppliers based on competitiveness regardless of country, potentially including Chinese suppliers, breaking from traditional Japanese keiretsu ties. Separately, Sony raised its profit forecast, with its stock up 5%. Sony's content investments are paying off: the PlayStation game Wolverine was the best-selling in the US in September, Spider-Man films grossed $2.5 billion worldwide, and Michael Jackson music streams quadrupled following the release of a biopic.