Nikkei 225 higher as Japan PM eyes stimulus boost

<p>The Nikkei 225 has closed higher as the Japanese prime minister plans for fresh stimulus measures.</p>

The Nikkei 225 in Tokyo closed higher this morning (October 19th) as the country's prime minister considers fresh stimulus measures to spur growth in the world's third-largest economy.

Yoshihiko Noda has ordered his cabinet to draw up a package to be compiled in November 2012, but did not give details on how big the programme would be.

Japan's growth has been weakened by falling demand for exports as key trading partners the US and Europe struggle with their own financial crises.

Furthermore, anti-Japanese sentiment in China over the territorial dispute regarding islands in the East China Sea has been bad for business.

At the same time, domestic consumption in Japan has been subdued and the country's economy only expanded by 0.3 per cent in the second quarter – which was down from one per cent in the first three months of the year.

At close of play this morning the Nikkei 225 was 0.2 per cent higher to an index value of 9002.6 points.

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