Tokyo - Japan's core machinery orders rose 10.4 per cent in seasonally adjusted terms in May to 1.11 trillion yen (10.41 billion dollars) from the previous month, the Cabinet Office said Wednesday.

The figures came out better than the average market expectations of a 0.8-per-cent monthly rise and a 3.5-per-cent fall on year. The key orders was up 5.1 per cent from a year earlier.

May core orders grew on brisk demand from electric machinery makers, steelmakers and the transport sector for such items as semiconductor manufacturing equipment, boilers and railroad vehicles, the government said.

Core machinery orders from manufacturers rose a seasonally adjusted 12.2 per cent from April to 493.3 billion yen, and orders from non-manufacturers climbed 8.8 per cent to 623.4 billion yen.

Core private-sector machinery orders are considered as a leading indicator of corporate capital spending about six months ahead. The core orders exclude those for ships and from electric power companies as they tend to vary widely due to their large size. (dpa)