Japan's economy is getting busy again

The news allayed fears that Japan's economy might be running out of steam and boosted Tokyo's Nikkei stock index, which closed at a seven-month high.

Shares of machine makers gained most after the so-called Tankan survey indicated they were investing heavily.

Despite the strong data, the Bank of Japan is still seen as unlikely to raise interest rates next week.

Earlier in the month conflicting data had confused the markets when unemployment had fallen sharply, while economic growth for the three month to September had been much weaker than expected.

The Nikkei index closed at 16,941 - a gain of 85 points.