- Title: JAPAN: Nikkei jumps as Prime Minister Shinzo Abe unveils stimulus package
- Date: 11th January 2013
- Summary: TOKYO, JAPAN (JANUARY 11, 2013) (REUTERS) EXTERIOR OF TOKYO STOCK EXCHANGE (TSE) SIGN IN ENGLISH READING: "TOKYO STOCK EXCHANGE" ELECTRONIC BOARD SHOWING MARKET CLOSING ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE AT 10801.57 UP 148.93 TSE MARKET CENTRE VARIOUS OF TSE STAFF WORKING VARIOUS OF CIRCULATING STOCK PRICE TICKER VARIOUS OF CURRENCY BROKERS CALLING INTO MICROPHONE ELECTRONIC BOARD SHOWING DOLLAR YEN RATE BETWEEN 89.07 AND 89.08 BROKER WIPING NUMBERS OFF WHITE BOARD MORE OF BROKERS
- Embargoed: 26th January 2013 12:00
- Keywords:
- Location: Japan
- Country: Japan
- Topics: Economy
- Reuters ID: LVADNXPU91UDQ1M189K1PC9JPO8A
- Story Text: Japan's Nikkei hit a 23-month high on Friday (January 11), with exporters up on a weaker yen after Prime Minister Shinzo Abe unveiled a $117 U.S. billion stimulus package and reportedly said the central bank should consider pursuing maximum employment.
The Nikkei ended 1.4 percent higher at 10,801.57 points, while the broader Topix index gained 1.1 percent to 898.69.
Earlier in the day, Abe announced the plans for the biggest stimulus package since the financial crisis, aimed at creating jobs, spurring growth and ending deflation.
The Nikkei is hitting highs not seen since 2011.
The yen also slid to two-and-a-half year lows on Friday (January 11).
Abe is gambling that a shift to a more expansionary fiscal policy and more monetary easing from the central bank can end years of stop-start growth.
Also adding pressure to the yen, data showed Japan posted a current account deficit of 2.5 billion U.S. dollars (222.4 billion yen) in November.
It was the first deficit in ten months and far larger than economists' median forecast of an almost negligible deficit of 39 million U.S. dollars (3.5 billion yen).
The yen has been sinking since November on speculation of more easing from the BOJ. Traders expect the central bank to adopt an explicit two percent inflation target at its policy meeting on Jan. 21-22 to fall in line with the aims of the Liberal Democrat Party-led government elected last month.
But with the yen's climb having shot to about ten percent against the dollar and 13.5 percent versus the euro in less than two months, some traders have begun to worry about friction with other countries. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2013. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None