Sentiment in Asian equity markets on Wednesday was cautious ahead of a closely anticipated speech by Japanese Prime Minister Shinzo Abe on a long-term strategy to revive Japan’s economy.
Japan’s Nikkei index was flat at the 13,540 mark, Australia’s S&P ASX 200 index tumbled 1 percent to a four-month low and South Korea’s Kospi fell 0.7 percent.
In Japan, Abe is due to present the third of his “three arrows” strategy to parliament. The final arrow, which follows monetary and fiscal stimulus, focuses on long-term structural changes and is expected to include measures such as pension funds reallocating some of their hefty funds into stocks and creating new special economic zones to boost growth.
“Any very specific proposals by Abe backed by real legislation or by immediate executive implementation, will send the market higher again. On the other hand, broad and unspecific proposals will likely cause the market to fall,” wrote analysts at publication Success Stories.
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