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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: Professor Dotcomm who wrote (1834)	4/8/1999 11:38:00 PM
From: borb	Respond to of 3902

Agree. Trend of rebound is getting clear.

To: Professor Dotcomm who wrote (1834)	4/9/1999 11:19:00 PM
From: chirodoc	Read Replies (1) \| Respond to of 3902

Asia-Pacific April 9 1999 JAPAN: Kan calls for second budget By Michiyo Nakamoto in Tokyo Japan's opposition leader yesterday called on the government to put together a supplementary budget in order to ensure that growth is sustainable amid economic restructuring. Naoto Kan, leader of the largest opposition Democratic Party, said the government would need a supplementary budget focused on dealing with supply-side measures and unemployment, to provide a safety net amid widespread corporate restructuring. "The government says the economy has hit bottom but we do not believe it has hit bottom," Mr Kan said. Earlier this week, the World Bank revised its estimate for Japanese gross domestic product to negative 0.9 per cent growth. Mr Kan's call highlights expectations that a supplementary budget will be required in spite of unprecedented stimulus measures included in the ¥81,900bn ($674bn) budget for 1999 which passed the Diet just last month. This year's budget includes ¥20,000bn in public works spending and tax cuts. The Democrats themselves have been outspoken critics of the ruling Liberal Democratic Party's high-spending ways, which they have warned would lead to spiralling debt for future generations. Mr Kan's forecast follows suggestions by the US government and private economists that a further supplementary budget may be necessary. Even among Japanese officials, Toyoo Gyohten, a former special adviser to Prime Minister Keizo Obuchi, indicated the government's goal of achieving 0.5 per cent growth this year looked optimistic. "I have to confess that I am less optimistic than that," Mr Gyohten said yesterday. The LDP has brushed aside suggestions that it was considering another supplementary budget just weeks after the budget was adopted. However, some LDP members are calling for further stimulus measures to counter the likely downturn when public works spending trails off later this year. Mr Kan said that the restructuring of Japanese corporations was expected to increase unemployment, making it necessary for the government to create jobs. The LDP's emphasis on public works to boost the economy does not create the kind of jobs in services needed to deal with the economic restructuring Japan faces, he said.