Japan's core machinery orders rose 13.4 percent in January from a month earlier, well above analyst expectations in a Reuters poll for a rise of 7 percent, data on Thursday showed.
The data, which is an indicator or capital spending six to nine months down the line, is a positive sign that a pick up in business investment could be around the corner.
"They are obviously good numbers," Bank of Singapore Chief Economist Richard Jerram told CNBC Asia's "Squawk Box."
"Exports have been struggling but capex [capital expenditure ] is picking up, which suggest there is a broad lift across the domestic economy," he added.
Core machinery orders, regarded as a volatile number, rose 23.6 percent in January from a year earlier, above expectations for a 18.8 percent rise.
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Japan's economy is getting back on its feet after almost two decades of poor growth and deflation. Aggressive monetary stimulus and a weak yen have helped boost growth and many analysts expect the Bank of Japan to deliver further stimulus in the months ahead.
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