Japan government braces for October stimulus to defend economy

Japanese media Kyodo News cites anonymous sources to confirm on Wednesday that the government in Tokyo appears set to roll out fresh economic stimulus in October.

Reuters quotes the Japanese media while stating the main aims of the stimulus as “To support companies' wage hikes and mitigate energy bills.”

“Prime Minister Fumio Kishida is expected to order his government agencies to draft the package by the end of September, with an aim of compiling an extra budget to fund the measures,” the news mentioned.

It should be noted that Reuters came out with the analysis suggesting the burden of the nation’s debt due to the stated stimulus within the news. The calculations signal Japan’s debt, which is already double the size of GDP, to reach a record high of 112 trillion yen ($760 billion) for the next fiscal year.

USD/JPY grinds higher

USD/JPY remains on the front foot around 147.70 as Tokyo opens for Thursday, after reversing from a 10-month high the previous day, despite lacking bearish momentum during late Wednesday.