Japan unveils 21 trillion yen economic stimulus package, with inflation relief accounting for more than half.

Japanese Prime Minister Sanae Takaichi's cabinet has approved the largest supplementary spending package since the pandemic began, allocating funds through a comprehensive scheme to alleviate voter discontent. However, this move is likely to unsettle investors closely monitoring Japan's fiscal situation, causing the yen to fall to a 10-month low and yields on ultra-long-term government bonds to surge to record highs. The Cabinet Office said on Friday that the stimulus package includes 17.7 trillion yen (approximately US$112 billion) in general account spending. This spending is likely to be provided through a supplementary budget, representing a 27% jump from the size of the package launched by her predecessor a year ago. The overall package totals 21.3 trillion yen, with measures ranging from price relief to investment support in key areas. The cabinet plans to approve the supplementary budget that funds the package as early as November 28 and aims to have it passed by the Diet by the end of the year. (Jinshi)