Machine Orders In Japan Unexpectedly Dropped As The Strength Of Yen's Impact

Its seems that the negatively impact of the Yen's appreciation is
continuing to haunt Japanese economic recovery during the New Year,
where the machine orders index in Japan unexpectedly dropped for a
third month in November, indicating that companies still concerned
about the strength of recovery, because of the Japanese companies
intended to reduce their capital spending on expand their investment.

Machine orders in Japan declined 3.0% in December following a decline
by 1.4%, and it came opposing analyst's forecasts of an incline by
2.0%. Machine orders rose to 11.6% during the year ended December from
7.0% a year earlier, while it was expected to increase by 17.4%.
The Yen's gain is still hurt the economic growth in Japan and it is
working to reduce the companies' investment during the year, signaling
that the economy will be in a narrow range during the first half of
2011.

As for a result of a drop in Japan's machine order will increase
concern about the economic recovery in the nation that is slowing, as
the government's stimulus spending fades during the month September.
Orders will likely drop in the second half of the fiscal year ending
March as companies placed them in the fiscal year ending March as
companies placed them in the first half due to concern about an
economic slowdown.

Moreover, some companies in Japan are working to face the yen's
advance and to keep their producing by the next five years, such as
the world's largest automaker (Toyota Motor Corp.) is challenging
itself to produce more even as even retrain its capital spending,
while it aims to keep its annual capital spending at about 700 billion
yen (8.43 American dollars).

On the other hand, Japan's current account surplus narrowed for the
first time in three months in November as the export-dependent economy
retreated by 15% due to the yen's appreciation along with the
decline in global demand that remains below levels witnessed last
year, also the nation import growth has exceeded exports.
The expectations indicated that Japan's gross domestic product will
slow at a 1.9% annualized during the third fourth quarter of 2010
Source: ActionForex.Com