Japan gets ¥7.2trn injection to stave off recession

Japan's newly elected Democratic Party has agreed a ¥7.2trn (£48bn) stimulus package to prevent the country's economy sliding back into recession.

The package includes measures to bolster employment, extend incentives for energy efficient products, as well as financing to help small and medium-sized businesses. Although Japan's economy has grown over the past two quarters, the return of deflation has triggered fears growth could be halted. The strong yen, which recently hit a 14-year high against the dollar, is also making it more expensive to export goods. However, the announcement failed to impress the Japanese market as the Nikkei closed down 0.3% or 27 points at 10,140, ending six days of consecutive gains.