Japan’s weak machinery orders darken outlook, raise policy challenge

Japan's core machinery orders fell more than expected in July, as manufacturers in the world's third-largest economy balk at new investments in the face of sluggish global growth and weakness in major market China. Core orders, the leading indicator of Japanese business spending, were down 1.1% in July from the previous month, the data showed. Orders from manufacturers fell 5.3%, the largest decline in eight months, due to weak demand for computers from industries including electric machinery, auto and chemicals.