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Business trends

Japan Inc.'s return on equity to top 10% for the first time

Foreign investors bring about change in mindsets of business managers

TOKYO -- Japanese corporations are catching up with their Western counterparts in profitability, with their return on equity, a key metric, expected to surpass 10% for the first time ever thanks to years of overseas expansion and organizational streamlining.

Companies listed on the Tokyo Stock Exchange's first section, excluding those in the financial sector, are set to turn in an aggregate ROE of 10.1% for fiscal 2017, a study by Nikkei shows. Figures stand at around 14% among U.S. blue chips and about 10% in Europe.

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