Data showing a surge in Japanese machinery orders is a sign that Japan Inc. is finally moving into expansion mode, just what's needed to boost the country's long-term growth prospects, analysts say.
Core machinery orders, a volatile number seen as an indicator of capital spending by corporates in the months ahead, soared 9.3 percent in November from a month earlier, marking a second straight month of gains.
It was the fifth biggest increase on record and well above expectations for a 1.2 percent rise by economists polled by Reuters.
"The data tells you that Japan has its mojo back," Jesper Koll, managing director and head of Japanese equity research at JPMorgan Securities, Japan told CNBC Asia's "Squawk Box." "It tells you that corporate Japan's animal spirits are alive and firms are investing in the future."
Economists say corporates investing more and raising wages are crucial to the success of Japanese Prime Minister Shinzo Abe's plans to revive an economy that has spent much of the past 20 years mired in deflation and slipping in and out of recession.