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

Odaily Planet Daily reports that Japanese Prime Minister Sanae Takaichi's cabinet has approved the largest supplementary spending plan since the pandemic began, allocating funds through a package to alleviate voter discontent. However, this move may trigger unease among investors closely monitoring Japan's fiscal situation, causing the yen to fall to a 10-month low and ultra-long-term government bond yields to surge to record highs.

Japan's Cabinet Office said Friday that the stimulus package includes 17.7 trillion yen (about $112 billion) in general account spending. This spending, likely provided through supplementary budgets, represents a 27% jump from its predecessor's package launched a year ago. The overall package totals 21.3 trillion yen and measures range from price relief to investment support in key sectors.

The Japanese cabinet plans to approve the supplementary budget to fund the program as early as November 28, and aims to have it passed by the Diet by the end of the year. (Jin Shi)