Nikkei jumps after machinery order data

Japanese share market closed higher on Monday, 18 May 2015, buoyed by moderately weaker yen against the greenback and better than expected Japanese core machinery orders for March. But, gain on the upside was limited on caution ahead of Japanese gross domestic product figures for January-March on Wednesday and a Bank of Japan policy setting meeting set to conclude Friday. The benchmark Nikkei 225 index advanced 157.35 points, or 0.8%, to finish at 19890.27. The broader Topix index of all first-section shares ended up 19.55 points, or 1.22%, up at 1626.66.

The Cabinet Office said on Monday Japanese core machinery orders rose 2.9% in March from the previous month. The rise on a seasonally adjusted basis came after a 1.4% decline in February. Machinery orders are widely regarded as a leading indicator of corporate capital investment. The Cabinet Office expects orders likely to fall 7.4% from the previous quarter for the April to June period.

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