Japan November machine orders rocket higher: +3.4% m/m (expected -0.4%) +10.3% y/y (+5.6%)

Core machinery orders data is a highly volatile series

• its used as a leading indicator of capital spending in the coming six to nine months

The Bank of Japan is meeting this week, on January 23 and 24. A rate hike is widely expected and data such as this, which is admittedly a volatile data point, will support such expectations.