Japan Aug core machine orders were below forecast and lost y/y momentum, implying some downside capex momentum risks (which has been a resilient source of Japan's GDP growth). We were -0.9%m/m versus +0.5% forecast, whole July fell 4.6%. This dragged the y/y outcome down to 1.6%, with the market consensus looking for an unchanged 4.9% outcome in Aug. The chart below plots core machine orders y/y versus Japan capex, ex software, also in y/y terms (this series is the orange line on the chart).
Fig 1: Core Machine Orders (White Line) & Capex Y/Y

Source: Bloomberg Finance L.P./MNI
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Most EM Asia markets saw positive inflows to start the week (although Malaysia remained closed, returning tomorrow). The pace of inflows was positive for both South Korea and Taiwan, albeit down from recent highs. The 5-day sums for both markets remains quite healthy and some slowdown in inflows is not that surprising given the recent surge into these markets from a flow standpoint. Taiwan for September to date has already seen +$7.45bn in net inflows, which is close to 2025 highs, and we only around halfway through the month.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2025 To Date | |
| South Korea (USDmn) | 147 | 3040 | -2152 |
| Taiwan (USDmn) | 144 | 5059 | 7549 |
| India (USDmn)** | 116 | 304 | -15408 |
| Indonesia (USDmn) | 64 | -305 | -3664 |
| Thailand (USDmn) | 10 | -12 | -2543 |
| Malaysia (USDmn)* | 25 | -2 | -3808 |
| Philippines (USDmn) | -8 | -5 | -736 |
| Total (USDmn) | 497 | 8079 | -20762 |
| * Data Up To Sep 11 | |||
| * Data Up To Sep 12 |
Source: Bloomberg Finance L.P./MNI
TYZ5 is trading 113-13+=, down 0-02 from its close.
In post-Tokyo trade on Friday, JGB futures closed weaker, -2 compared to settlement levels.