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.

Learn about CFD trading strategies and the stock market at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.