Capital spending up in Japan

n&rs

n’s core machinery orders rose more than expected in April, official data showed yesterday, suggesting that rebuilding from last year’s earthquake will offset some of the pain from a strong yen and Europe’s debt crisis to support the fragile economy. The 5.7 per cent rise in core orders, a leading indicator of capital spending, was more than the median forecast for a 2.1 per cent gain and followed a 2.8 per cent drop in March, data from the Cabinet Office showed. The data underscores the Bank of Japan’s view that robust domestic demand will help the economy toward a moderate recovery. But policymakers have little to cheer about with the outlook clouded by slowing Chinese growth.