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Japan outlines $150bn stimulus | |
(about 4 hours later) | |
Japan has unveiled its record $150bn (£105bn) stimulus package as it seeks to revive its flagging economy. | |
Prime Minister Taro Aso announced the package, worth about 3% of its gross domestic product, in Tokyo after the ruling party approved the measures. | |
The 15.4tn yen package, to be formally unveiled on Friday, includes measures to boost fuel-efficient vehicles and consumer electronics. | |
Shares in Tokyo gained as details of the stimulus plan were announced. | |
'Opportunity' | |
"Only countries that can turn a challenge into an opportunity can prosper in the future," Mr Aso said. | |
The stimulus plan, the government's third in the past year, is bigger than many analysts had expected. | |
The country is going through its worst recession since World War II as the global financial downturn sapped demand for its exports. | |
Japan's benchmark Nikkei 225 index closed at a three-month high, rising 3.74% to finish at 8,916.06. | Japan's benchmark Nikkei 225 index closed at a three-month high, rising 3.74% to finish at 8,916.06. |
Shares in carmakers and solar power-related firms gained after details of the draft plan were released. | Shares in carmakers and solar power-related firms gained after details of the draft plan were released. |
"This may contribute to GDP for a year," said Masamichi Adachi, an economist at JP Morgan. "The consequences over the longer term are negative as we are piling up more of a fiscal burden. Bond issuance will go up from here on." | |
The package came out as figures showed Japan's machinery orders unexpectedly rose in February thanks to gains in the services sector. | The package came out as figures showed Japan's machinery orders unexpectedly rose in February thanks to gains in the services sector. |