Japan's Historic Economic Stimulus Amid Rising Fiscal Concerns

Japan's upper house has approved an 18.3 trillion yen ($118 billion) supplementary budget, marking the largest financial stimulus since COVID-19. Prime Minister Takaichi aims to implement this despite rising concerns over fiscal health, with new debt issuance proving pivotal. Bond yields are climbing as an interest rate hike looms.

In a significant move, Japan's upper house has sanctioned an additional budget of 18.3 trillion yen, equivalent to $118 billion, aimed at energizing the country's economy post-COVID-19.

This approval grants Prime Minister Sanae Takaichi the green light to advance the most substantial financial stimulus package since the pandemic, even as fiscal health concerns rise.

The fiscal strategy relies heavily on new debt issuance, coinciding with a notable increase in bond yields and anticipated interest rate adjustments by the Bank of Japan.

(With inputs from agencies.)