Japan Goverment Dismiss Lukewarm Reception to Growth Plan

Japan’s top government spokesman on Thursday brushed aside suggestions that the government’s latest growth strategy has failed to meet market expectations, saying Prime Minister Shinzo Abe’s policies are not simply aimed at pleasing financial market players.

“We are not engaging in politics only for the sake of markets,” Chief Cabinet Secretary Yoshihide Suga told a news conference, while adding, “The Japanese economy has been stably recovering” with the weakening yen “giving positive effects to the economy in general.”

His remarks followed a continued downward trend in the Tokyo stock market, despite Abe having made the final touches to his first full-fledged growth strategy since taking office in December. The prime minister’s other steps to boost the economy, including flexible budget spending and support for bolder monetary easing by the Bank of Japan, earlier triggered rallies in the market.

On Wednesday, the key Nikkei stock index lost more than 3 percent to end at a two-month low — hours after Abe gave a speech to detail the latest part of the strategy, which will be approved by his Cabinet next week. The index continued to slide Thursday morning.

via Mainichi

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