Japan's exports grew the most since 2010 in April while capital spending perked up on surging global demand for cars and electronics.
 
Also brightening the outlook, confidence among the nation's manufacturers hit a more than two-year high in May on the back of solid overseas orders.
 
Global appetite for cars and electronics has picked up since last year, driven by a recovery in the U.S. and Chinese economies — Japan's key markets — although global chip shortages put a drag on overseas shipments in recent months.
 
Exports rose 38.0% in April from a year earlier, as per official data compared with a 30.9% increase expected by economists and following a 16.1% rise in March.
 
That was the fastest gain since April 2010, led by U.S.-bound shipments of cars and car parts and Chinese demand for chip-making equipment.
 
U.S.-bound exports grew 45.1% in the year to April, the fastest gain since 2010, on the back of demand for automobiles, car parts and ship engines.
 
The Cabinet Office maintained its assessment on machinery orders, saying that a pick-up is stalling.
 
Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank said that export growth is welcome for the Japanese economy, but that doesn't mean the whole of Japan can benefit from it.
 
It is important now is a recovery in service-sector activity helped by a progress on coronavirus vaccination.