Japanese Shares Boosted by Hopes of Tax Hike Delay

Japanese shares have kicked off the week on a positive note on hopes that the government might delay a rise in sales tax due next year.

At the close, the benchmark Nikkei 225 rose 1.39% to 17,068.02.

Prime Minister Shinzo Abe wants to delay the nation’s tax hike to 2019, according to media reports, including Japan’s Nikkei newspaper.

The next tax hike was supposed to take place in April next year, with an increase to 10% from the current 8%.

The planned increase was initially designed to help balance the national budget. But there has been increasing pressure on Mr Abe to postpone the tax hike, to help Japan avoid slipping into deflation.

One report suggested an official announcement could take place on Wednesday, at the end of Japan’s current session on parliament.

Courtesy : BBC