Japanese machine orders drop 10%

Japanese machinery orders tumbled 10.4 percent last quarter, matching the biggest drop on record, as manufacturers cut investment plans in anticipation the global slowdown will stifle overseas demand.

The decline in orders, an indicator of capital spending in the next three to six months, matched a record drop set 10 years ago, the Cabinet Office said yesterday in Tokyo.

Falling profit for Japan's exporters has driven the Nikkei 225 Stock Average down 44 percent this year and forced some of the country's biggest companies to cut costs. Toyota Motor Corp last week forecast earnings will drop by almost 70 percent this fiscal year and said it plans to lay off workers and scale back investment.