Japan's Cabinet Office publish private sector machinery orders (excluding volatile ship and power equipment)

+4.1% m/m

  • expected +1.1%, prior -3.3%
  • Indicates a pick up in capex to come (in around 6-9 months)
  • Having said that, this is a volatile data point
  • But ... if capital expenditure does pick up it's a good sign for growth. Capex had fallen in Q3

-5.6% y/y

  • expected -4.9%, prior +4.3%-

Also, Japan PPI for November:

+0.4% m/m

  • expected +0.3%, prior -0.1%

-2.2% y/y

  • expected -2.3%, prior -2.7%

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ps. Stay tuned later this week for the Bank of Japan Tankan report

  • Indicates business sentiment
  • Economists expect the mood among big manufacturers improved to 10 (was 6 prior)
  • Citing a rebound in exports 9the weaker yen assisting here ... but now its rebounding that could be an issue going forward)
  • For large non-manufacturers, survey shows sentiment is expected to have improved to 19 (previously 18)

Last week we go the Reuters Tankan