Signs are gradually emerging that Japan's economy may have a bright future, spurred by an increase in capital spending and improvements in the U.S. and East Asian economies, Bank of Japan Gov. Toshihiko Fukui said Wednesday.
"The outlook for the Japanese economy is steadily improving," Fukui told a news conference. "It looks certain that forward-looking circulation in the economy will start."
He said a pickup in production would lead to increases in household and corporate spending. He also said these positive views are reflected in recent gains in Tokyo share prices, with the benchmark Nikkei average rising briefly above 11,000 Wednesday for the first time in 14 months.
Exports and production, which have remained flat, are expected to gather steam, as the U.S. and East Asian economies have returned to a recovery path.