Despite concerns about the economic outlook due to the wider impact of the coronavirus outbreak, the unexpected increase in core machinery orders in January was a positive sign for business investment.
Data released by the cabinet office on Monday showed that core machinery orders were a highly volatile data series, seen as a capital expenditure indicator for the next six to nine months, up 2.9% from January.
The increase came after a sharply revised 11.9% decline in December, better than the 1.6% drop economists expected in a Reuters survey.
Over the past month or so, the outlook for the world's third-largest economy has been bleak, as the rapid spread of the coronavirus around the world has led to significant disruption in supply chains and businesses, especially in China.
Japanese Prime Minister Shinzo Abe said Saturday that Japan would consider various options, including a proposal to temporarily reduce Japan's sales tax rate, to support an economy "hit hard" by the virus outbreak.
"However, given that orders in January predate the global panic surrounding the spread of coronavirus, we are focusing on more timely indicators. This shows the general collapse of economic activity. " He said.
The Bank of Japan said Monday it would hold an emergency policy meeting at 12 p.m. (0300 GMT) to discuss monetary policy based on recent economic and financial developments, which would replace the scheduled rate review from March 18 to 19.
Hot Model No.: