Surprise rise in Japan machinery orders

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 10, 2009

</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Surprise rise in Japan machinery orders
February uptick defies analyst expectations, comes after 4 months of declines

<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20></TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>
(TOKYO) Orders for Japanese machinery rose unexpectedly in February, breaking a four-month streak of declines that came as exports crashed and profits evaporated.

Bookings, an indicator of capital investment in the next three to six months, climbed 1.4 per cent from January, the Cabinet Office said yesterday. The median estimate of 28 economists surveyed by Bloomberg was for a 6.9 per cent drop.
Shares rose, led by machinery makers on optimism that the economy's deterioration may be easing after the collapse in exports caused gross domestic product to shrink the most since 1974 in the fourth quarter.
Recent reports show companies plan to increase output after draining inventories, merchant sentiment climbed to an eight-month high in March, and manufacturers expect to be less pessimistic next quarter.
'It's highly likely that when we look back at this downturn we'll see that February was when it hit bottom,' said Kyohei Morita, chief economist at Barclays Capital in Tokyo. Still, he added: 'Bottoming out doesn't mean Japan will have a solid recovery.' The benchmark Topix stock index climbed 1.6 per cent, extending its rally to 16 per cent over the past month.
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE cellSpacing=0 cellPadding=4 width=300 align=right border=0><TBODY><TR><TD vAlign=top align=middle>

<!-- AdSpace --><IFRAME marginWidth=0 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 scrolling=no height=250 bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript></noscript></IFRAME><!-- /AdSpace-->

</TD></TR></TBODY></TABLE>The Cabinet Office raised its assessment of machinery orders for the first time since May 2007, saying they're 'rising slightly but still on a downward trend'. Previously it said orders were declining 'sharply'. Bookings from service companies rose 3.3 per cent from January, a second month of gains. Orders from manufacturers fell 8.1 per cent, less than the 27.4 per cent drop in the previous month.
Confidence among merchants surged to the highest since July last month, the Cabinet Office said on Wednesday, indicating factory production may recover soon, according to Takahide Kiuchi, chief economist at Nomura Securities Co in Tokyo. Companies cut inventories at a record pace in February.
Even so, there's still no let-up in the export slump that prompted Prime Minister Taro Aso to order his third stimulus package since coming to office in September.
Shipments abroad plunged a record 50.4 per cent in February from a year earlier, the Finance Ministry said on Wednesday, and another survey showed bankruptcies rose to a six-year high in March. -- Bloomberg

</TD></TR></TBODY></TABLE>