- Jun Kawakami, an economist at Mizuho Securities Co.
Japanese core machinery orders fell more than expected in August, a sign the domestic demand hit by the global slowdown. According to the Economic and Social Research Institute nation's machinery orders, which are an indicator of capital spending in three to six months, fell 3.3%, down from 4.6% in the preceding month. The fall was also worse than analysts' forecast of a 2.5% decline. On a yearly basis core orders tumbled 6.1%.
"There's a growing number of people who are pessimistic about the economic outlook," Jun Kawakami, an economist at Mizuho Securities Co. in Tokyo, said before the report. "It's really hard to see any signs that companies will increase capital spending."
"The latest data is for August. The October-December forecast will be a better reflection of current business sentiment," said Yoko Nakagaki, head of the government's business statistics bureau.
The Nikkei 225 Stock Average slumped 0.15 per cent, or 12.66 points, to 8,534.12. The broader Topix Index surged 0.61 per cent, or 4.37 points, to 718.32.
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