Japan's top government spokesman said on Monday the nation's capital spending is on a rising trend on the back of improving corporate earnings, and it will likely continue to increase.

He made comment after data showed Japanese companies raised their capital expenditure in July-September by 5.5 percent from the same period last year, indicating the recession in the third quarter may be less severe than feared.

Chief Cabinet Secretary Yoshihide Suga also told a news conference the government will closely monitor currency movements.

The yen hit a new seven-year low against the dollar amid growing concerns over deflationary pressure in Japan in the face of sliding oil prices.