Japan: Markets on edge over the possibility of a large fiscal stimulus package – Deutsche Bank

Research Team at Deutsche Bank, suggests that under the spotlight right now is Japan where markets are on edge over the possibility of a hotly anticipated large fiscal stimulus package announcement.

Key Quotes

“This comes following comments from PM Abe yesterday and the suggestion is that he is due to meet former Fed Chair Bernanke today after Bernanke met with BoJ Governor Kuroda yesterday. There’s been no announcement so far this morning but the story is dominating the wires.

Our Japanese economists are noting that the market is expecting a package in the range of JPY10-20tn and the Nikkei newspaper also suggested that the government is considering issuing new debt for the first time in four years. Japanese equity markets have rallied for a second consecutive day with the news.”