The stimulus package prepared by the Japanese Government following the overwhelming victory of the party of Prime Minister Shinzo Abe, in elections to the Senate excited today to investors of the Tokyo Stock Exchange, which reaped their biggest gain in three months.
The result of the elections held on the eve interpreted as an accolade to the so-called "Abenomics" the economic reform program championed by the chief Japanese government, which is committed to monetary stimulus on a large scale and a strong public spending.
Although Chinese slowdown, falling oil prices or rising yen, which hurts the export muscle nipón- have blurred the effects that until now had "Abenomics", the Japanese seem to want to continue betting on the strength of this track.
With virtually zero inflation and consumption -the main engine of the third world economy not just take momentum, tokiota square craved an additional flexibilizer move by the Bank of Japan (BoJ) as well as a fiscal stimulus package, especially after "brexit".
Although the victory of the Liberal Democratic Party (LDP) Abe was given for granted, the strength of the result (which cemented the dominance of the ruling coalition) today filled with enthusiasm early in the Tokyo Stock Exchange.
Then Abe intervention at a press conference dispelled doubts about the commitment to the stimulus that the prime minister had already suggested during the last summit of the G7 and this helped to accelerate the rise of selective Nikkei, which ended 3.98 percent higher.
"My Government has been mandated to accelerate 'Abenomics'. We believe that people have asked us to dinamicemos the economy and to implement new measures for it," said the Japanese leader after explaining that his Cabinet compile a battery of stimulus measures that They will present to Parliament in August.
The Abe Administration would aim to establish a package that includes private sector loans, worth more than 10 trillion yen (89,120 million euros / 98 450 million), as anticipated a government source the newspaper Nikkei.
Among the measures being considered is an infrastructure plan designed to promote the export of agricultural products and to attract more tourists at a time when Japan wants to double by 2020 the number of foreigners visiting the country to 40 million annually.
the aging population and low birth rates: measures to tackle increasingly urgent problems in the third world economy are also contemplated.
In this sense, the expansion of childcare facilities be promoted and substantially improve the conditions for professionals working in child care and the dependent elderly.
Some analysts have doubted the suitability of activating this stimulus as Japan, the most indebted country in the developed world, he had barely begun to clean up its taxation in recent years.
In fact, this extraordinary budget to finance the Cabinet will consider making the first special issue debt in four years.
The Japanese financial market, however, the announcement seemed a brisk pace that can help Japan out of economic stagnation and deflationary cycle nearly two decades.