Japan machinery orders likely improved slightly in March

Japan will release March core machinery orders (MoRs) on 18 May. MoRs is expected to have improved marginally by 0.2% m/m in March after declining for two consecutive months, but to have declined 5.6% y/y due to base effects. 

MoRs are regarded as an indicator of capex and tend to move with industrial production (IP) and exports.

IP and export growth in February and March was lower than late last year and January, suggesting that the recent recovery momentum in the business sector may have paused. 

"We expect a pick-up in H2-2015 as external demand improves", says Standard Chartered.