Tokyo Shares Hit By Slide In Oil Prices

TOKYO, (UrduPoint / Pakistan Point News - 2nd Augst,2016) - Tokyo shares snapped a two-day rally Tuesday with energy firms hit by a slide in oil prices, as the Japanese government was set to unveil a stimulus package to boost growth. The Japanese government was scheduled later Tuesday to release details of a 28-trillion Yen ($273 billion) plan to kickstart the sluggish economy, threatened by a strengthening yen and weak consumption. "There's a growing sense that there's disappointment coming in the announcement this afternoon from the prime minister," Michael McCarthy, chief market strategist at CMC Markets Asia Pacific in Sydney, told Bloomberg news.

"So the initial policy reaction to last week's announcement of the stimulus package is now being reversed somewhat.

The lower oil price is adding to that momentum." Losses picked up in late afternoon trading as media reported that a draft of the plan called for about 7.5 trillion yen in fresh spending, with the rest of the plan made up of loans and other financing. At the close, the benchmark Nikkei 225 index was down 1.47 percent, or 244.32 points, at 16,391.45.