India’s strongest electoral mandate in 30 years puts Narendra Modi in a position to pass measures to bolster Asia’s third-biggest economy, spurring optimism it will lead a recovery among the biggest emerging markets.
Doubling Japan’s sales tax by 2015 won’t be enough to contain the nation’s growing debt load and the government needs to outline how it will pay for swelling social-welfare expenses, a Standard & Poor’s analyst said.
Standard & Poor’s says if the Bank of Japan increases Japanese government bond purchases that could help the nation overcome deflation, adding to pressure on the bank to consider further monetary stimulus.
Standard & Poor’s said Japanese Prime Minister Yoshihiko Noda’s administration hasn’t made progress in tackling the public debt burden, an indication it may be preparing to lower the nation’s sovereign grade.
Prime Minister Naoto Kan ’s election loss could lead to a downgrade of Japan’s credit rating should it hamper his ability to address the world’s largest public debt, Standard & Poor’s and Moody’s Investors Service said.
Disruptions in Japan’s power supply after the world’s strongest earthquake in more than six years may affect the country’s economic output and hurt the rest of the region, Standard & Poor’s Ratings Services said today.