Japan machinery orders unexpectedly fall

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TOKYO- Japan’s core machinery orders unexpectedly fell in September from the previous month, government data showed, although they are expected to grow in the current quarter of the year.

The orders dropped 0.7 percent in September month-on-month, confounding economists’ median estimates for a 1.9 percent   rise and down for the second straight month.

On a year-on-year basis, core orders, a highly volatile data series seen as a key gauge of capital spending in the coming six to nine months, decreased 4.8 percent, versus an expected rise of 2.2 percent, the Cabinet Office data showed.

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By sector, core orders from manufacturers was flat in September from a month ago, while those from non-manufacturers rose 1.5 percent   in the same period.

The Cabinet Office left its assessment of machinery orders unchanged, saying the recovery was pausing.

At the same time, it expects machinery orders between October and December to rise 5.7 percent   quarter on quarter.

Japan’s exports fell for the first time in 10 months in September, data showed last month, a worry for policymakers as any prolonged weakness in global demand may complicate the central bank’s path to exit years of ultra-easy monetary policy.

Soft demand in China and slowing US growth weighed on exports, while the yen’s recent rebound, in part due to the Bank of Japan’s unexpected rate hike in late July, helped further push down their value.

Total exports in September dropped 1.7 percent from a year earlier, Ministry of Finance data showed, missing a median market forecast for a 0.5 percent increase and following a revised 5.5 percent rise in August.

Exports to China, Japan’s biggest trading partner, slumped 7.3 percent in September from a year earlier, while those to the United States were down 2.4 percent, the data showed. Weak demand for automakers led the export declines for both countries. Imports in September grew 2.1 percent from a year earlier, compared with market forecasts for a 3.2 percent increase.

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