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| Japanese government approves $116bn stimulus package | Japanese government approves $116bn stimulus package |
| (35 minutes later) | |
| The Japanese government has approved a fresh 10.3 trillion yen ($116bn; £72bn) stimulus package in an attempt to spur a revival in its economy. | The Japanese government has approved a fresh 10.3 trillion yen ($116bn; £72bn) stimulus package in an attempt to spur a revival in its economy. |
| The package will include infrastructure spending, as well as incentives for businesses to boost investment. | The package will include infrastructure spending, as well as incentives for businesses to boost investment. |
| The government said the stimulus is likely to boost Japan's gross domestic product by two percentage points. | The government said the stimulus is likely to boost Japan's gross domestic product by two percentage points. |
| Japan's economy has been hurt by a dip in exports amid slowing global demand and subdued domestic consumption. | Japan's economy has been hurt by a dip in exports amid slowing global demand and subdued domestic consumption. |
| The world's third-largest economy is currently in a recession, having contracted for two quarters in a row. | The world's third-largest economy is currently in a recession, having contracted for two quarters in a row. |
| 'Seriously committed' | |
| Shinzo Abe, Japan's new prime minister, has promised to take aggressive measures to help put the economy back on a growth track. | Shinzo Abe, Japan's new prime minister, has promised to take aggressive measures to help put the economy back on a growth track. |
| He has called upon Japan's central bank, the Bank of Japan (BOJ) to implement measures, including doubling its inflation target to 2% to help revive growth. | He has called upon Japan's central bank, the Bank of Japan (BOJ) to implement measures, including doubling its inflation target to 2% to help revive growth. |
| The government reiterated his stance, saying said that it is looking to "build a framework for strengthening cooperation" with the central bank and called on the bank may ease its policies in coming months. | The government reiterated his stance, saying said that it is looking to "build a framework for strengthening cooperation" with the central bank and called on the bank may ease its policies in coming months. |
| "We strongly expect the BOJ to conduct aggressive monetary easing with a clear price target," it said in statement. | "We strongly expect the BOJ to conduct aggressive monetary easing with a clear price target," it said in statement. |
| Mr Abe has also promised to take measures to weaken the yen. | Mr Abe has also promised to take measures to weaken the yen. |
| A weaker Japanese currency bodes well for the country's exporters as it makes their goods less expensive to foreign buyers and also helps boost their profits when they repatriate their foreign earnings back home. | A weaker Japanese currency bodes well for the country's exporters as it makes their goods less expensive to foreign buyers and also helps boost their profits when they repatriate their foreign earnings back home. |
| The yen has weakened nearly 12% against the US dollar since November last year on hopes of such moves. It was trading close to 88.97 yen against the US dollar in Asian trade on Friday. | |
| The government said that it will continue to keep a watch on the currency's movements and "respond as appropriate". | The government said that it will continue to keep a watch on the currency's movements and "respond as appropriate". |
| Japanese shares rose on the news of the stimulus with the Nikkei 225 index gaining 1.2%. | |
| "Shinzo Abe is seen seriously committed to making the economy better as he is becoming more detailed," said Kyoya Okazawa, head of global equities at BNP Paribas. | |
| "Investors are feeling it is possible under his government." |