Newspaper reports indicated the package would include 13 trillion yen in direct fiscal measures such as boosting spending by national and local governments as well as loan programs.
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Japanese Prime Minister Shinzo Abe on Wednesday said his government is set to unveil a stimulus package of more than 28 trillion yen ($266 billion) to boost the sluggish economy that is witnessing fragile growth and hardly any inflation.
The government is drafting a stimulus package that could be unveiled in coming days as Mr Abe tries to recharge his economic agenda after a commanding election victory earlier this month. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.
U.S. stocks were mixed as Federal Reserve policymakers kicked off a two-day interest rate meeting and investors braced for quarterly scorecards from Apple and Twitter.
Tokyo stocks ended the day 1.7 percent higher.
The DAX of Germany climbed 0.49 percent, the CAC 40 of France rose 0.15 percent and the FTSE 100 of the United Kingdom gained 0.21 percent.
Pressured by the weakness in Chinese shares, Hong Kong stocks.HSI also declined 0.4 percent though mainland Chinese investors continued to snap up shares through a stock market connection scheme. It was last down 0.92 percent at 105.64 per dollar.
“So far it looks like the Bank of Japan is not ready to do something new and that leaves the potential for more downside for the dollar before the meeting on Friday”, said Thu Lan Nguyen, a currency strategist with Commerzbank in Frankfurt. While analysts expect the Federal Reserve not to change policy this month, they said recent strength in US economic data and the recovery of investor sentiment since Britain’s referendum to leave the European Union have revived the possibility of a rate hike later this year. US housing data showed the biggest gain in new-home sales in eight years, spurring optimism in the economy and raising speculation the Fed may strike a more hawkish tone on rates. “We caution that there is a risk that markets may be caught wrong-footed in the event of a surprise downbeat tone”.
Financial stocks were also hit, with banking giant Mitsubishi UFJ Financial Group down 2.65 percent at 495.4 yen and rival Sumitomo Mitsui Financial Group falling 1.88 percent to 3,116 yen. United States crude was down 0.6 percent at $42.65 a barrel CLc1.
Alaris Royalty Corp slumped 10 per cent to $26.40 after sharply missing earnings expectations and providing a weaker-than-expected outlook after markets closed on Tuesday.
Brent crude traded down 56 cents a barrel at $44.31.
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The euro fell 1.37 per cent to 114.91 yen as traders dialled back expectations of how much new stimulus authorities will inject into Japan’s ailing economy at the end of the week.
