Japan's manufacturers face earnings downturn as China economy slips

Auto and materials sectors struggle in April-September half while AI surges

20241103N Mitsubishi Motors plant

Mitsubishi Motors' net profit declined 44% in the April-September half. (Photo by Kosuke Imamura)

KENSHO MOTOWAKI and KOSUKE OKAMOTO, Nikkei staff writers

TOKYO -- Earnings for Japan's manufacturers slowed in the April-September half as the Chinese economy lost steam, with more companies reporting a decline in profit than an increase for the first time in four years.

The automotive and materials industries were hit particularly hard, while businesses tied to artificial intelligence boomed.

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