Oct core orders 0.7 mm vs f39;cast 0.5
Core orders 2.2 yryr vs f39;cast 5.1
Govt keeps view machinery orders are 39;stalling39;

TOKYO, Dec 14 Reuters Japan39;s core machinery orders unexpectedly rose in October, climbing for a second straight month, data showed on Thursday, but remained down yearonyear as uncertainty about the global economy pared companies39; appetite for fresh investments.

Core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, were up 0.7 in October from the previous month, Cabinet Office data showed.

That compared with the median forecast for a 0.5 decline by economists in a Reuters poll.

On a yearonyear basis, core orders, which exclude volatile numbers from shipping and electric utilities, slipped 2.2, the data showed. It was better than a forecast for a 5.1 drop.

The government, though, retained its view that machinery orders were stalling, according to the Cabinet Office data.

The machinery orders are expected to recover at a modest pace because domestic demand is weaker than expected and the outlook for overseas economies is not bright, said Masato Koike, economist at Sompo Institute Plus.

By sector, orders from manufacturers climbed 0.2 in October from the previous month, bouncing back from 1.8 decline in September, due to a rise in orders for metal products.

Servicesector orders advanced 1.2 after a 5.7 gain the prior month, owing to an increase in orders from…