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Thursday, 9th September 2010
In Business In Japan,

Japan reports signs of recovery

New figures show that machinery orders in Japan have once again increased.

There was an 8.8 per cent rise reported in July compared to June. It is now the second month running that the government figures have been positive.

In particular, there was strong growth within the chemical and electronic equipment sector for orders from manufacturers, according to AP.

The results were ahead of Kyodo news agency's prediction of a 1.5 per cent rise and are being seen as a sign that Japan's industrial recovery is underway.

However, Keisuke Tsumura, the cabinet's parliamentary secretary, did raise concerns that the ongoing strength of the yen on currency markets could undermine any potential recovery.

"If the impact of the yen's rise becomes more serious, we cannot rule out the possibility that machinery orders and capital spending will be negatively affected," he added, reports Kyodo.

Wednesday trading saw a new 15-year high of 83.4 yen against the US dollar.

Written by Mark Smith.