Japan’s Takaichi urges to boost capacity with proactive fiscal policy

Japanese Prime Minister Sanae Takaichi recently highlighted the importance of proactive fiscal policy to strengthen the nation's capabilities. She argued against excessive fiscal tightening, signaling the need for measures that support economic growth. This position illustrates the government's approach toward revitalizing economic activity, which could have positive implications for the market. Investors may become optimistic about the potential improvement in future economic conditions based on such statements. Japan has struggled with prolonged low growth and low inflation, and Takaichi's remarks might elevate expectations for reforms. An increase in government spending could expand domestic demand and lead to better corporate performance, making it essential to monitor how these factors impact the market.