Japan Core Machinery Orders Fall 9.1%

Japan’s core machinery orders fell 9.1 percent in April from a month earlier, data on Thursday showed, retreating from a record 19.1 percent increase in March.

The decline in machinery orders, a volatile indicator viewed as a gauge of capital spending in the next six to nine months, compared with analyst forecasts in a Reuters poll for an 11.9 percent fall.

“The inevitable plunge in machinery orders in April does not alter our view that investment spending will continue to recover. Our forecasts for the output gap still point to rising capital expenditure,” analysts at Capital Economics said in a report.
The yen traded at a more than one-week high of 102 per dollar following the slightly better-than-expected data.
Compared with a year earlier, machinery orders rose 17.6 percent against analyst expectations for a 13.2 percent rise.

The benchmark Nikkei stock index meanwhile opened down 0.8 percent in early Tokyo trade.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza