Japan's February machinery orders rebound but investment outlook fragile

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Japan's machinery orders posted their first monthly increase in four months...

TOKYO - Japan’s machinery orders posted their first monthly increase in four months in February due to improved demand from the energy and telecommunications sectors but weakening global conditions remain major challenges for the world’s third-largest economy.

But the expansion was weaker than the median forecast for a 2.5 percent increase in a Reuters poll of economists. It is also unlikely to ease concerns that companies could drastically cut business investment due to the U.S.-Sino trade war and rising inventories of electronic parts. Of some encouragement for policymakers, machinery orders from overseas rose 19.0 percent, recovering from an 18.1 percent tumble in January.The United States and China are trying to narrow their differences over trade but are yet to agree to a deal that would unwind punitive tariffs and restore global trade flows.

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