"If the overseas economy remains stagnant, we will come to a point when we'll need to be bearish about the outlook on capital spending"
- Kohei Okazaki, an economist at Nomura Securities Co.
Japanese core machinery orders surged in July, mostly led by an increase in manufacturing sector orders. Machinery orders, which is a leading indicator of corporate capital investment, jumped 4.6% from the prior month, after adding 5.6% in June, the Cabinet Office said on Wednesday. Manufacturing sector orders rocketed 12%, a sign manufacturers are more confident about Japanese economy.
"If the overseas economy remains stagnant, we will come to a point when we'll need to be bearish about the outlook on capital spending," said Kohei Okazaki, an economist at Nomura Securities Co. in Tokyo.
"The data indicates that capital spending is basically on a recovery trend, but considering weak exports and worries about the economic outlook, there is a possibility that firms will postpone their capital spending plans," said Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo.
The Nikkei 225 Stock Average advanced 0.39 per cent, or 35.19 points, to 8,995.15. The broader Topix Index rose 0.32 per cent, or 2.41, to 744.23.
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