Japan’s new government is preparing a stimulus package worth more than ¥17 trillion (about $110 billion), according to reporting by the Nikkei on Sunday. Finance Minister Satsuki Katayama disclosed the scale of the plan after meeting Prime Minister Sanae Takaichi, who took office in October and has pushed for an aggressive response to rising living costs and a loss of economic momentum.
The package is expected to channel spending into cost-of-living relief and targeted investment in strategic sectors, including artificial intelligence and semiconductors — areas central to Tokyo’s long-term growth strategy and its push to strengthen supply-chain resilience. The Cabinet is expected to formally sign off on the plan on Friday.
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A package of this size could lean mildly supportive for Japanese risk assets. More fiscal looseness will tend to cap near-term yen strength.
