Japan's economic recovery is still glowing

Although only a month-on-month rise of 0.3%, and below some forecasts, the news saw Japan's leading shares rise for the first time in nine days.

Easing fears that Japan's economic recovery was stalling, the Ministry of Economic, Trade and Industry (METI) now expects a 1.3% rise in September.

The Nikkei index finished up 37.47 points at 10,823.57.

"There is no reason to change our assessment that the nation's industrial production activity is in a rising trend," said an METI official.

Across Japan's industrial sectors, steel and autos showed the highest rate of growth in August, while the electronics and computer sectors saw slower growth.

Sales of electronics and computer-related products are however expected to accelerate ahead of the key Christmas and winter bonus shopping season, analysts said.