Nikkei jumps and yen dives as Abe plans tax cut

Japan's Nikkei has soared while the yen has tumbled against the dollar, amid speculation the government is considering a corporate tax cut.

A report published on Tuesday said Prime Minister Shinzo Abe wants to cut the country's corporate tax rate to help offset a two-stage increase in sales tax. Coupled with stronger-than-expected economic data showing machinery orders had climbed, the news helped push the Nikkei up 2.4% to 13,847 as investors reacted favourably to the prospect of a tax break. Exporters were among the biggest winners following a slide in the value of the yen, which itself tumbled on the corporate tax cut news. The yen fall 0.5% overnight against the dollar to 96.7. A lower corporate tax rate is expe...