Bloomberg reported on Tuesday, Japanese Prime Minister Fumio Kishida is set to approve USD198 billion in the additional budget for the economic stimulus plan.

Meanwhile, Reuters reported, having seen a draft of the spending plan, Japan is set to spend 1.4 trillion Japanese Yen (JPY) ($9.55 billion) in additional fiscal loans in a second extra budget set to be compiled this month.

Separately, the  tax panel chief of PM Kishida’s junior coalition partner party Komeito said on Tuesday, the government “may opt to hike taxes on ultra-wealthy individuals with annual incomes of more than JPY1 billion ($6.8 million).”

Market reaction

USDJPY is extending its rebound towards 147.00 on the stimulus news. The pair is trading at 146.78, adding 0.11% on the day, at the time of writing.