The Japanese economy showed positive signs in January with investment and consumption both picking up the pace.
The country's core machinery orders rose by 8.3 percent in December on a monthly basis, the fastest pace in six months. Companies expect orders to increase by 1.5 percent in the current quarter. That's a positive sign that business investment will underpin a firm recovery for the recession-hit economy.
Strong capital expenditure is important as this could create more jobs and support consumer spending, which in turn adds momentum to the pace of inflation gains and help it reach the central bank's 2 percent price target.
Meanwhile, Data from Bank of Japan shows wholesale prices rose 0.3 percent in the year to January, a warming sign in the consumption end.