Nikkei goes down after gloomy report on stimulus plan
On Tuesday, market participants sharply scaled back their hopes for Japan’s soon-to-be announced stimulus package, thus bringing stocks down and pumping up the Japanese yen.
The Nikkei Stock Average sank 1.6%, the Japanese yen strengthened abruptly, with the dollar-yen pair dropping below 105.00 for the first time for two weeks.
Additionally, Australian S&P/ASX 200 dipped 0.2%, in Hong Kong the Hang Seng Index earned 0.8%, while Chinese Shanghai Composite Index soared 0.5%.
A report issued on Tuesday by the Nikkei business daily told that the Japanese government is on the verge of injecting up to 6 trillion yen in direct spending, thus doubling last estimate. However, the spending is going to come over several years, it means the initial impact will be less than expected, disappointing market participants.
Japan’s fiscal stimulus seems to be less bold and traders aren’t sure whether Haruhiko Kuroda, BOJ Governor is going to ease further or not.