Japan’s machinery orders posted surprise gains in July

Japan’s core machinery orders extended gains in July, raising hopes business growth spending may offset near-term headwinds from a global economic slowdown and a weaker yen, which has pushed up costs at home.

The surprise increase in core orders — a barometer of capital expenditure — could provide temporary relief for policymakers hoping for corporate investment to spur a domestic-led recovery in the world’s third-largest economy.