Japanese Prime Minister Fumio Kishida has unveiled an economic stimulus plan that includes tax breaks for domestic investments and measures to encourage wage growth, according to Japanese media. The plan aims to create a virtuous economic cycle of capital investment, wage growth, and investment in people. Tax cuts are also expected for income from strategic fields such as semiconductors and batteries. This stimulus package is an effort to boost Japan’s economy and encourage investment and wage increases.
In other news, Japan’s service producer price index (PPI) for August climbed 2.1% year on year, the fastest rate of increase in a year. This marks the third consecutive month of quickening wholesale inflation in the service sector. On a month-on-month basis, the service PPI rose by 0.1%. This increase in wholesale inflation indicates potential growth and positive momentum in Japan’s service sector.
Bank of America has upgraded three European luxury stocks that are performing well despite the broader negative trends affecting the luxury sector. The MSCI index of European luxury goods companies has fallen 16% since its recent high in April this year, due to evidence of slowing demand in the third quarter. Despite this, Bank of America sees these upgraded stocks as undervalued and having great potential for growth, making them attractive investments in the current market climate.