Japan’s new stimulus package to be JPY117.1 trillion – Bloomberg

Citing a document outline the additional stimulus budget, Bloomberg reports that Japan’s new package is likely to be JPY117.1 trillion.

Additional insights

“Budget includes 2 trillion yen in spending for rent support.”

“Adds 1.9 trillion yen for cash handouts to small businesses.”

“Adds 2 trillion yen for support of regional economies.”

“2nd extra budget includes 11.6 trillion yen for business financing.”

“Allocates 3 trillion for health care assistance.”

“Japan to issue 9.3 trillion yen of construction bonds for budget, to issue 22.6 trillion yen of debt-covering bonds for budget.”

“New spending in second extra budget is 31.9 trillion yen.”

“Stimulus package partly funded by 2nd extra budget.”

Earlier today, Reuters obtained a draft of the budget, which cited that the government will compile a fresh stimulus package worth USD1.1 trillion.

Market reaction

The stimulus headlines are seen pushing the Japanese stocks higher, in turn, aiding the recovery in USD/JPY from 107.36 lows. At the time of writing, the major trades flat at 107.50.