Japan's index of leading economic indicators rose above the boom-or-bust line to 77.8 in February from 50 the month before, preliminary data showed today.
The data comes as the local stock market is making solid gains based on growing optimism for a sustained economic recovery in Japan. A reading above 50 indicates economic expansion in the next three to six months. The leading index had been above that level for four months through December.
The coincident index, which measures the current state of the economy, stood at 88.9, remaining above the boom-or-bust line for the 10th consecutive month. The lagging index was at 66.7, above 50 for the sixth consecutive month.
The leading index comprises 12 indicators, of which data for 10 was used to compute the latest reading for January, still preliminary. Data for nine indicators was used to calculate the first reading for February, with seven pointing toward expansion. The figures for both months will be revised as data for the remaining indicators becomes available.
