Japan's solid machinery orders show firms ready to spend, support BOJ optimism

Tokyo

JAPANESE orders for machinery surged to their highest level in a decade in November, in a sign businesses may finally be responding to policymakers' efforts to get them to spend to spur economic growth.

The key measure of capital expenditure was issued just as Japan's top business lobby urged companies to raise wages by 3 per cent in upcoming annual salary negotiations with unions, supporting the government's efforts to accelerate inflation.

The developments suggest Premier Shinzo Abe is finally succeeding in nudging risk-shy firms to boost spending and help him stoke a virtuous cycle of business investment, consumer spendi…