"The Nikkei may lack momentum to extend gains beyond 10,000"
- Takeru Ogihara, chief strategist in Tokyo at Mizuho Trust & Banking Co.
Japanese core machinery orders rose more than expected in January, a sign the economy is picking up. Orders rose 3.4 per cent from December, said the Cabinet Office on Monday.
"The data shows corporate capital spending is rising moderately thanks partly to reconstruction-related demand, although the momentum is not that strong," said Junko Nishioka, chief economist at RBS Securities in Tokyo.
The Nikkei 225 fell 0.40%, or 39.88, to 9,889.86. The broader Topix lost 0.40%, or 3.43, to 845.28.
"The Nikkei may lack momentum to extend gains beyond 10,000," said Takeru Ogihara, chief strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan's third-largest lender by market value.
"Europe's economy is contracting and China's economic fundamentals remain dicey with exports being so weak."
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