Japanese Firms Earned Record 36% of Profit From Asia ex Japan

According to Nikkei, listed companies generated a record 36% of their combined operating profit in Asia excluding Japan in the fiscal year ended March 31, up 24 points, this shows a sign of Japan's growing reliance on neighboring markets.

The survey covered 432 companies that disclose group sales and operating profits figures for each region. Domestic operations accounted for 48% of overall operating profits, a drop of about 18%. The companies reported 10-20% decline in sales for all regions due to the global economic downturn. Operating profits plunged 82% in Japan, 96% in Europe and it was red in the US. Meanwhile, operating profits in Asia outside Japan dipped just 28%. Consumption has been relatively solid in emerging Asian markets. Many companies believe that Asia will remain strong and that efforts in this region will affect long-term growth.