Nikkei 225 climbs as Japanese govt approves more stimulus

<p>The Japanese government has approved fresh stimulus, buoying the Nikkei 225.</p>

The Nikkei 225 closed on a strong footing in trading this morning (January 11th), after the Japanese government approved a fresh 10.3 trillion yen (£72 billion) round of stimulus for the flagging economy.

Slowing global demand, the strong yen and weak domestic consumption have weighed down on growth and the nation dipped back into a technical recession in the latter part of 2012.

The new stimulus package aims to support growth by adding to infrastructure spending and the development of incentives to drive investment and the government estimates the programme will boost the economy by two per cent, resulting in 600,000 jobs being created.

Prime minister Shinzo Abe stated: "The previous administration failed to work out how to boost growth and expand the economic pie. It is vital that we have an economic strategy that can create jobs and raise incomes."

When the markets closed in the Japanese capital today, the benchmark Nikkei 225 made gains of 1.4 per cent – or 148.93 points – to an index value of 10801.5 points, as investor confidence was buoyed by the stimulus decision.

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