Vice President Joseph Biden arrives in Japan today on a trip to demonstrate the American commitment to the Asia-Pacific and defuse tensions over a Chinese air defense zone that drew criticism from the U.S. and its allies.
Election losses by the party of Japanese Prime Minister Naoto Kan over the weekend may delay a debate on whether to raise the sales tax to address the nation’s budget shortfall, according to Dai-Ichi Life Research Institute.
Japanese Prime Minister Shinzo Abe proceeded with an April sales-tax increase and a 5 trillion yen ($51 billion) stimulus plan as he tries to rein in the world’s biggest debt burden without negating efforts to end deflation.
This week’s slide in Japanese stocks raises the stakes for Prime Minister Shinzo Abe’s planned revamp of business regulations as officials sought to sustain confidence in efforts to revive the economy.
The Bank of Japan faces increased pressure to step up easing in coming weeks as political leadership changes and pessimism among manufacturers fuel calls for more aggressive action to end deflation and revive growth.