Japan's index of leading economic indicators jumped to 100 in August from 45.5 in July, preliminary data from the Cabinet Office showed. The market had expected the index to increase to 90, the average forecast of 16 brokerage and research houses polled by the Nihon Keizai Shimbun. Estimates ranged from 88.9 to 100. A reading above 50 points to economic expansion over the next six months, while a reading below 50 suggests contraction. The leading index is based on 12 indicators, of which data for 10 were available for the preliminary reading, with all suggesting expansion. The coincident index, which measures the current state of the economy, jumped to 88.9 from 30.0 in the previous month. The figure matched market expectations in a Nihon Keizai poll. Forecasts ranged from 66.7 to 100. The coincident index is based on 11 indicators, of which data for nine were available for the preliminary reading. Eight indicators reflected expansion and one suggested contraction. The lagging index also climbed to 75 from 40. The figure was based on four of six indicators used to compute the index which reflects economic conditions three months earlier, with three pointing to expansion and one indicating