Japan’s key capex gauge falls, clouding outlook

Rating downgrade: Cyclists riding past a container ship at a shipping terminal in Yokohama. Japan has cut its view on machinery orders excluding ship buildings and repairs. — Bloomberg

TOKYO: Japan’s core machinery orders unexpectedly fell for a second straight month in May, government data showed, stoking worries about capital spending and the sustainable recovery needed for the Bank of Japan (BoJ) to raise interest rates.

The volatile leading indicator of capital spending fell 3.2% month-on-month in May, following a 2.9% drop in April and confounding analysts in a Reuters poll calling for a 0.8% increase.