Japanese shares boosted by hopes of tax hike delay
30 May 2015, Nirapad News: 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.
The benchmark Nikkei 225 rose 0.82% at the open to 16,973.72 points, reports the BBC.
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 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.
Fresh data on Monday showed retail sales fell 0.8% in April, compared to the previous year, not as bad as the 1.2% drop expected by analysts.
At the start of the trading session, 148 stocks were trading up, with 67 stocks falling.
Technology stocks, including Panasonic, Sony and Sharp, were all in positive territory, while banking shares were mixed.
As for consumer-related shares, Fast Retailing, owner of clothing retailer Uniqlo saw its shares rise 0.41% at the open.