Japanese Prime Minister Shinzo Abe decided to increase the national sales tax next year. He said the move is necessary for maintaining the sustainability of the social security system and confidence in government finances. He added that the government has put together a package of economic measures designed to minimize the impact of the tax and put the economy back on a growth trajectory. Asian markets sold off modestly as the deadline for a U.S. government shutdown passed. The dollar declined slightly. The shutdown hit in the middle of Tuesday trading. Japan’s Nikkei Stock Average, earlier up more than 1.3% following upbeat economic news, was up just 0.3% shortly after the shutdown news. Korean and southeast Asian markets also remained higher. In currency markets, the U.S. dollar slipped back against the Japanese yen to Y98.11 after earlier trading in the mid-98 range. Traders said investors had largely positioned for the shutdown Monday as it became certain lawmakers would fail to agree on a budget before a Tuesday deadline. Stocks sold off across the region Monday.
Posted on: Tue, 01 Oct 2013 06:16:49 +0000
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