Japan approves stimulus sending Nikkei 225 higher
City Index November 30, 2012 2:15 PM
<p>The Japanese government’s decision to give more stimulus the green light has boosted Tokyo’s main stock benchmark.</p>
The Nikkei 225 closed the day's trading on a high today (November 30th) after the Japanese government gave a second round of stimulus the green light in a bid to drive growth.
An 880 billion yen (£6.7 billion) package was signed off by policymakers as the health of the world's third-largest economy becomes the main issue on the table in the run-up to the nation's general election.
There are fears for Japan as the country's gross domestic product (GDP) shrank by 0.9 per cent in the third quarter of 2012 compared with the previous three-month period – which is the equivalent to an annualised drop in GDP of 3.5 per cent.
This second stimulus package has been approved in order to boost employment and encourage small businesses to expand, according to the cabinet, but some economists are unconvinced 880 billion yen will be enough to improve matters.
At the end of trading in Tokyo today, the Nikkei 225 rose by 0.4 per cent – or 45.1 points – to an index value of 9446 points.
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