Japan's October core machinery orders rose for the first time in three months to beat expectations, government data showed - a tentative sign of a pickup in capital expenditure.
Core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, rose 4.1 percent in October from the previous month, Cabinet office data showed on Monday. The results handily beat the economists' median estimate of a 1.0 percent increase.
"Machinery orders are basically flat but picking up slightly," said Takeshi Minami, chief economist at Norinchukin Research Institute.
"If this pick up continues, capital expenditure might increase in fiscal 2017," Minami said, adding that improvement in domestic demand may help boost capital expenditure.