• By The Financial District

26 Of Japan's 33 Economic Sectors In The Black 1st Semester

Twenty-six of 33 sectors in Japan saw profit growth or a return to profitability in the April-September period from the previous year, a tally showed Monday, as both manufacturers and non-manufacturers are recovering from the fallout of the coronavirus pandemic, Mainichi Japan reported.

Photo Insert: The auto industry was one of the few stains on Japan's shiny first semester figures.

Based on earnings results released by listed Japanese companies on the First Section of the Tokyo Stock Exchange, the manufacturing industry as a whole saw net profit increase by about 2.6 times from a year earlier to 8.1 trillion yen ($71.4 billion), according to SMBC Nikko Securities Inc., which compiled the data.

Among the coronavirus-hit sectors, land and air transport continued to face headwinds. Despite seeing their net losses narrow, the outlook remains uncertain as the travel demand has yet to recover.

SMBC Nikko Securities compiled earnings results released as of Friday by 783 companies on the First Section reporting results for the year ending March, Kyodo News also noted.

The total net profit of the non-manufacturers for the first half of the year increased by about 2.6 times to 4.7 trillion yen, the data showed. Transport equipment, including automakers, a key driver of the economy, and electronics secured a net profit of over 2 trillion yen.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

However, the situation for the auto industry was not as bright, partly due to the impact of production cutbacks. Iron and steel, boosted by steel price hikes, and textiles swung back into the black, according to the data.

In the wholesale sector, where major trading companies performed well on the back of higher resources prices, net profit tripled, while the shipping sector, where container freight rates remained high, posted a 14.4-fold increase, supporting the overall growth.

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