Japan Releases Strong Core Machinery Data
Japan’s Nikkei 225 rose in Asian trading, as a surprisingly positive set of data releases boosted Japanese stocks. With many investors opting to stay on the sidelines, to gauge the general reaction by the markets to a weak set of data releases from China over the weekend, the data from Japan, the world’s third largest economy, helped maintain the risk appetite from last week.
In a report issued by the Economic and Social Research Institute, official data showed on Sunday that Japan’s core machinery orders increased unexpectedly last month. Japan’s Core Machinery Orders increased to 15.0%, jumping up from the 4.2% recorded in the preceding month. This came as a welcome surprise to markets who had expected Japan’s Core Machinery Orders to actually post a decline to 3% last month.
The unexpected Japan’s core machinery orders increase was taken as a sign that rising business investment may well bolster economic growth. The increase in core orders, an extremely volatile data series is regarded as a a reliable indicator of future capital spending over the next six to nine months.
The positive data release went some way to supporting Japanese markets, with the Nikkei 225 closing up 1.74%, at 17233.75. Meanwhile, the Japanese Yen traded stronger in the markets, with the USD/JPY down 0.05%, trading at 113.77
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