Corporate profits fell worldwide for the first time in three quarters during January-March, data compiled by Nikkei shows, as economic headwinds in China rippled across industries ranging from chemicals to steel and machinery, Report informs.
Yet American tech giants and semiconductor-related companies are posting gains on the rise of generative artificial intelligence, highlighting the global economy's growing reliance on the US.
Net profit across roughly 24,600 publicly traded companies -- including in the US, Japan, China and Europe -- fell 6% on the year to $1.11 trillion, according to earnings results and forecasts from QUICK FactSet and other sources.
Together, these companies account for over 90% of global market capitalization.
Profits grew at nine out of 17 industries, compared with 11 in the October-December quarter.
Chinese companies logged a roughly 10% decrease in net profit on the year in January-March. Banks, which generate around 40% of total profits among the country's listed businesses, have suffered from lower interest rates aimed at boosting the struggling property sector there. The Industrial and Commercial Bank of China, the country's top player, saw its profit decline from narrowing margins.