TOKYO, March 4 Reuters Japan39;s corporate spending on plant and equipment jumped in the fourth quarter, suggesting likely positive revisions to data that showed the economy unexpectedly tipping into recession last year.

The solid capex data could also bolster the case for the central bank to normalise its extremely accommodative monetary policy in the near term. Investor focus is now on this year39;s wage negotiations, which could deliver more hefty pay hikes, a prerequisite for ending negative interest rates.

Capital expenditure rose 16.4 in the fourth quarter from a year earlier, and 10.4 on a seasonally adjusted quarterly basis, the Ministry of Finance data showed on Monday.

The data will be used to calculate revised gross domestic product figures due on March 11. Preliminary estimates last month showed Japan fell in OctoberDecember for the second straight quarter, the definition of a technical recession, weighed in part by a decline in the GDP39;s capex component.

Takeshi Minami, chief economist at Norinchukin Research institute, said revised GDP data could now be upgraded to show an expansion in the fourth quarter, which would effectively mean the economy managed to avoid a recession at the end of last year.

It could be encouraging to the Bank of Japan even though it may not have a direct implication on monetary policy, Minami said. Wages are in focus and we are still expecting the central bank to end negative rates in April rather than March.

Monday39;s MOF…