JAPANESE CORPORATE EARNINGS RECOVERY PREDICTED

  Japanese corporate earnings will rise 8.9
  pct in fiscal 1987/88 for the first year-on-year increase in
  three years, partly because of the yen's stable exchange rate,
  the Nomura research institute said.
      Sales of all industries are predicted to rise 1.9 pct in
  the year, which starts April 1, the research arm of Nomura
  Securities Co said in a statement.
      Recurrent profits were estimated to fall 20 pct in the
  current fiscal year with sales forecast to drop 14 pct.
      The forecast assumes an average rate of 148.5 yen to the
  dollar in 1987/88, compared with 160 yen in the current year.
      Corporate efforts to cope with the yen's appreciation, such
  as cutting production costs, are expected to bear fruit next
  fiscal year, the institute said. The economy should also
  benefit from pump-priming expected from the government and a
  halt in rising prices of manufactured goods, it said.
      Recurrent profits of manufacturing industries are projected
  to rise 29.6 pct next fiscal year against an estimated 40.1 pct
  fall in the current year.
      Non-manufacturing sector profits will decline 4.5 pct in
  1987/88 against an estimated 2.2 pct rise in the current year,
  it said.
  

