Japan's PM Takaichi Unveils Ambitious Economic Stimulus Plan

Japan's new Prime Minister, Sanae Takaichi, is crafting an economic stimulus package exceeding $92 billion to fight inflation and boost growth. The plan includes abolishing a gasoline tax and supporting growth sectors, with a focus on small businesses. Funding discussions are underway amid fiscal discipline concerns.

Japan's newly appointed Prime Minister, Sanae Takaichi, is preparing a significant economic stimulus package, expected to surpass $92 billion, sources revealed on Wednesday. This initiative aims to aid households grappling with inflation and showcases Takaichi's dedication to a 'responsible proactive fiscal policy.'

The stimulus is structured around three core pillars: combating inflation, investing in growth industries, and ensuring national security. Initial reactions saw Japan's Nikkei index recover losses, and the yen's gains stabilize. A critical component of the anti-inflation measures includes abolishing the provisional gasoline tax rate.

Further investments are anticipated in sectors such as artificial intelligence and semiconductors. As the government drafts a supplementary budget, there are concerns about balancing fiscal discipline with economic expansion if spending surpasses previous forecasts.

(With inputs from agencies.)