"Around three or four trillion yen would make a difference"
- Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management
Japanese government plans to launch another round of quantitative easing by the end of November, by using discretionary budget funds, as Prime Minister's Yoshihiko Noda administration will be left without cash already in the next month. However, it might be limited by the political opposition, which may not give its permission to borrow to pay for this year's deficit.
"The next economic stimulus should come from the BOJ," said Hiromichi Shirakawa, chief Japan economist at Credit Suisse AG and a former BOJ official. The government "does not want to do a big package because monetary stimulus is in sight."
"Around three or four trillion yen would make a difference," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.
The Nikkei 225 Stock Average climbed 0.22 per cent, or 19.82 points, to 9,002.68. The broader Topix Index gained 0.28 per cent, or 2.09 points, to 754.39.
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