"The impasse on deficit-covering bonds may delay the compilation of a stimulus package and would be a drag for the economy"
- Taro Saito, director of economic research at NLI Research Institute
Japan's average cash earnings fell more-than-expected in July, data from the Ministry of Health, Labour and Welfare released on Tuesday showed. The total average monthly cash earnings per employee in Japan posted the third straight monthly fall in July, down 1.2% , after -0.4% in the preceding month.
"The impasse on deficit-covering bonds may delay the compilation of a stimulus package and would be a drag for the economy," said Taro Saito, Tokyo-based director of economic research at NLI Research Institute.
"This is not as severe as the U.S. fiscal cliff but could be said to be Japan's fiscal slope."
The Nikkei 225 Stock Average declined 1.09 per cent, or 95.69 points, to 8,679.82. The broader Topix Index erased 1.18 per cent, or 8.60, to 718.09.
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