Japanese stocks slide as Abe's stimulus package underwhelms

Smaller than expectations

Japan's Prime Minister Shinzo Abe has unveiled a new programme of tax and spending measures as he tries to stimulate demand and achieve economic growth in Japan.

The latest package from Tokyo is a 13.5trn (£100.4bn) yen programme of higher spending on welfare and infrastructure. However, it is said to be smaller than the 28trn yen stimulus promised by Abe previously. The markets were underwhelmed by the news, with the Topix index down 2.2%, while the Nikkei 225 dropped 1.9%; they are trading 23% and 22% lower over 12 months, respectively. The measures include 2.5trn yen for welfare, including help for poor pensioners and childcare subsidies, 1.7trn yen on infrastructure and 0.6trn yen for small and medium sized companies adversely affected by ...