Japanese firms invest less as China fears grow

TOKYO: Japanese firms spent less on plant and equipment in April-June than in the previous quarter despite reaping record profits, a sign premier Shinzo Abe’s stimulus policies have failed to spur new investment key to ending nearly two decades of deflation.

Fears of a sharp slowdown in China and the recent market sell-off may further dampen companies’ spending appetite and hurt Japan’s fragile recovery, analysts say.