Nikkei Drops After Abe Economic Plans Disappoints

It’s time for Japan to become an engine of global economic recovery, said Prime Minister Shinzo Abe as he kicked off his highly anticipated speech addressing how the government plans to drive longer term growth in the world’s third largest economy on Wednesday.

But plans outlined by Abe, ranging from setting up special economic zones to attract investment and raising incomes by 3 percent annually over the next 10 years, weren’t enough to excite equity investors.
After briefly rising 1.25 percent minutes after the speech began, the Nikkei 225 promptly slipped into negative territory, closing down almost 4 percent on Wednesday.
Abe’s economic strategy, dubbed “Abenomics” rests on “three arrows:” monetary and fiscal stimulus to get growth going and long-term structural change to ensure sustainable growth.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza