Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Indexes  >  Nikkei 225    N225   JP9010C00002

NIKKEI 225

(N225)
SummaryQuotesChartsNewsHeatmapComponents 
News SummaryAll newsNews of the components ofMarketScreener Strategies

NIKKEI : Japan preparing $120 billion stimulus package to bolster fragile economy

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/03/2019 | 02:29am EST
Aftermath of Typhoon Hagibis in Nagano Prefecture

Japan is preparing an economic stimulus package worth $120 billion to support fragile growth, two government officials with direct knowledge of the matter said on Tuesday, and complicating government efforts to fix public finances.

The spending would be earmarked in a supplementary budget for this fiscal year to next March and an annual budget for the coming fiscal year from April. Both budgets will be compiled later this month, the sources told Reuters, declining to be identified because the package has not been finalised.

The package would come to around 13 trillion yen ($120 billion), but that would rise to 25 trillion yen ($230 billion) when private-sector and other spending are included.

The Nikkei business daily reported on the weekend that the government was considering putting together a large-scale stimulus package with fiscal spending exceeding $92 billion.

Japan's economic growth slumped to its weakest in a year in the third quarter as soft global demand and the Sino-U.S. trade war hit exports, stoking fears of a recession. Some analysts also worry that a sales tax hike to 10% in October could cool private consumption which has helped cushion weak exports.

Such spending could strain Japan's coffers - the industrial world's heaviest public debt burden, which tops more than twice the size of its $5 trillion economy.

Despite the headline size of the stimulus, actual spending would be smaller in the current fiscal year, and economists are not expecting much of a boost.

"We expect this fiscal year's extra budget to total around 3-4 trillion yen. We should not expect it to substantially push up the GDP growth rate," said Takuya Hoshino, senior economist at Dai-ichi Life Research Institute.

The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan programmes, as the heavily indebted government seeks to take advantage of low borrowing costs under the Bank of Japan's negative interest rate policy.

Direct government spending is expected to reach around 7-8 trillion yen, they said.

The government will mobilise construction bonds, unused money from the previous fiscal year's budget and fiscal investment and loan programmes to secure necessary funding, the Nikkei reported on Tuesday.

The spending package won't involve deficit-covering bond issuance, the Nikkei added.

A final decision on the package could be made as early as Thursday.

By Yoshifumi Takemoto and Tetsushi Kajimoto

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NIKKEI 225
12/11Asian shares drift higher, pound eases on YouGov poll
RE
12/10NIKKEI : Japan to slash tax revenue forecast as trade war hits exports - source
RE
12/10WALL STREET STOCK EXCHANGE : Stocks Finish Lower After Paring Losses on U.S.-Mex..
DJ
12/10WEEKLY PORTFOLIOS REPORT : Stress quickly erased
12/10SEVEN & I : Japan's 7-Eleven admits it underpaid staff for years
RE
12/09Asian shares ease slightly as tariff deadline looms
RE
12/09WALL STREET STOCK EXCHANGE : U.S. Stocks Slip as Trade War Weighs on Chinese Exp..
DJ
12/09WALL STREET STOCK EXCHANGE : U.S. Stocks Slip as Trade War Weighs on Chinese Exp..
DJ
12/09Weekly market update : The Christmas rally may not be a smooth ride
12/09WALL STREET STOCK EXCHANGE : U.S. Stocks Wobble as Trade War Weighs on Chinese E..
DJ
More news
News of the components of NIKKEI 225
09:31aOTSUKA : Announcement of Changes in Company Officers at Otsuka Pharmaceutical Co..
AQ
09:19aAB InBev's $11 billion Aussie asset sale to Asahi hits hurdle
RE
09:10aTREND MICRO INCORPORATED : Research Urges Oil and Gas Industry to Prioritize Cyb..
BU
03:05aNEC : Demonstration of Secure Data Backup of Medical Records Using Secret Sharin..
AQ
02:48aToyota's U.S. Chief To Retire In April -- WSJ
DJ
02:31aAMADA : Notice of Resolutions of the Extraordinary General Meeting of Shareholde..
PU
02:16aVietnam's Nghi Son refinery produces 4.6 million tonnes in first year
RE
More news
Chart NIKKEI 225
Duration : Period :
Nikkei 225 Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NIKKEI 225
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Top / Flop NIKKEI 225
Heatmap :