Japan’s machinery orders fell more than forecast in September, indicating that companies may hold off on outlays on concern a global slowdown and a strong yen will hurt business.
Bookings, an indicator of future capital spending, fell 8.2 percent in September from August, the Cabinet Office said in Tokyo today. The median forecast of 29 economists surveyed by Bloomberg News was for a 7.1 percent fall. Orders rose 11 percent in August from July.
A yen trading near post-World War II highs against the dollar eroded profits at Japanese exporters from Sony Corp. to Toyota Motor Corp. last quarter. Industrial production dropped a sharper-than-expected 4 percent in September, in a sign demand for Japanese products may be faltering.
“September was probably a period of cooling,” and concerns about the global economy have lessened since then, said Naomi Fink, head of Japan strategy at Jefferies Japan Ltd. in Tokyo.
Japan’s currency traded at 77.79 per dollar as of 11:14 a.m. in Tokyo and the Nikkei 225 Stock Average fell 2.4 percent after a surge in Italy’s bond yields stoked concern that Europe’s debt crisis is spreading.
The yen’s appreciation to a postwar record of 75.35 yen on Oct. 31 prompted Japan to intervene in the currency market for the third time this year. Barclays Bank Plc and Totan Research Co. estimate that officials sold a record 8 trillion yen ($103 billion) in a single day, based on analysis of the Bank of Japan (8301)’s balance sheet.
