Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances.

The massive spending would underscore the resolve of Prime Minister Fumio Kishida to focus on reflating the economy and redistributing wealth to households.

In a meeting of government and ruling party executives on Friday, Kishida announced his plan to spend around $490 billion in the stimulus package, and compile an extra budget by year-end to fund the measures.

The total package, which includes funds that do not lead to immediate spending, will likely reach $690 billion, according to a final version of the draft of the stimulus package obtained by Reuters.&nbsp;

The government will announce details of the package after it is signed off at a cabinet meeting later on Friday.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said despite higher spending, the impact would be limited on markets as the Bank of Japan would keep borrowing costs low under its yield curve control policy.

Surging global crude oil prices, as well as a chip shortage and supply-chain constraints, undermined a trade-reliant economy seen to have shrunk in the third quarter as pandemic curbs and supply bottlenecks hurt consumption and output.

Measures to be included in the package are steps to ramp up domestic production of semiconductors as well as a $87.5 billion&nbsp;fund aimed at giving universities more resources to boost science and technological research, the draft showed.

The spending plan will also get a boost from cash payouts to citizens aged 18 or younger, which would cost about 2 trillion yen, and to small firms hit hard by the pandemic, to total some 3 trillion yen, the Nikkei reported. It includes the resumption of tourism promotion to stimulate demand after the pandemic.

Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances.

Japan's government announced a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances. The massive spending would underscore the resolve of Prime Minister Fumio Kishida to focus on reflating the economy and redistributing wealth to households. In a meeting of government and ruling party executives on Friday, Kishida announced his plan to spend around $490 billion in the stimulus package, and compile an extra budget by year-end to fund the measures. The total package, which includes funds that do not lead to immediate spending, will likely reach $690 billion, according to a final version of the draft of the stimulus package obtained by Reuters. The government will announce details of the package after it is signed off at a cabinet meeting later on Friday. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said despite higher spending, the impact would be limited on markets as the Bank of Japan would keep borrowing costs low under its yield curve control policy. Surging global crude oil prices, as well as a chip shortage and supply-chain constraints, undermined a trade-reliant economy seen to have shrunk in the third quarter as pandemic curbs and supply bottlenecks hurt consumption and output. Measures to be included in the package are steps to ramp up domestic production of semiconductors as well as a $87.5 billion fund aimed at giving universities more resources to boost science and technological research, the draft showed. The spending plan will also get a boost from cash payouts to citizens aged 18 or younger, which would cost about 2 trillion yen, and to small firms hit hard by the pandemic, to total some 3 trillion yen, the Nikkei reported. It includes the resumption of tourism promotion to stimulate demand after the pandemic.

Japan announces $490 billion stimulus package to tackle Covid knockdown

Japan's prime minister on Tuesday unveiled more than $700 billion in fresh stimulus to fund projects from anti-coronavirus measures to green tech, the country's third such package this financial year.

The coronavirus pandemic has wrought global economic carnage and countries across the world have announced massive cash injections.

Also read|&nbsp;<a href="https://www.wionews.com/world/more-people-died-by-suicide-in-october-than-from-covid-19-in-2020-in-japan-346347">More people died by suicide in October than from COVID-19 in 2020 in Japan</a>

Premier Yoshihide Suga said the latest package, worth 73.6 trillion yen ($708 billion) -- including loan schemes and actual government spending of around 40 trillion yen -- would be formally approved later Tuesday.

It is the first stimulus spending Suga has announced since taking office in September, and comes as Japan faces a spike in Covid-19 infections, with record numbers of new cases reported in recent weeks.

"We drew up (the stimulus package) to pave the way for new growth, to protect people's livelihoods as well as maintaining employment and keeping businesses going," he said.

Japan officially exited recession last month after three quarters of contraction, and hopes to cement its recovery with the latest spending -- which follows previous packages in April and June worth around 117 trillion yen each.

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Government data released Tuesday revised up Japan's GDP figure for the July-September period to 5.3 percent from a preliminary estimate of 5.0 percent.

The new package includes financial support for medical institutions and facilities for the elderly, and subsidies to continue a controversial domestic travel scheme supporting tourism-dependent businesses.

While Japan has seen a relatively small Covid-19 outbreak overall -- with 163,929 confirmed cases and 2,382 deaths -- there has been a sharp rise in infections, and doctors have warned that hospitals could be overwhelmed.

A severe shortage of medical staff has been reported in Osaka and the northern Hokkaido region, with local media saying military backup could be sent to hospitals there.

The package also features a $20 billion green tech fund designed to support projects from renewable energy development to pollution reduction.

In October, Suga set a 2050 deadline for Japan to become carbon neutral, significantly firming up the country's climate-change commitments.

Japan's prime minister on Tuesday unveiled more than $700 billion in fresh stimulus to fund projects from anti-coronavirus measures to green tech, the country's third such package this financial year.

Japan's prime minister on Tuesday unveiled more than $700 billion in fresh stimulus to fund projects from anti-coronavirus measures to green tech, the country's third such package this financial year. The coronavirus pandemic has wrought global economic carnage and countries across the world have announced massive cash injections. Also read| More people died by suicide in October than from COVID-19 in 2020 in Japan Premier Yoshihide Suga said the latest package, worth 73.6 trillion yen ($708 billion) -- including loan schemes and actual government spending of around 40 trillion yen -- would be formally approved later Tuesday. It is the first stimulus spending Suga has announced since taking office in September, and comes as Japan faces a spike in Covid-19 infections, with record numbers of new cases reported in recent weeks. "We drew up (the stimulus package) to pave the way for new growth, to protect people's livelihoods as well as maintaining employment and keeping businesses going," he said. Japan officially exited recession last month after three quarters of contraction, and hopes to cement its recovery with the latest spending -- which follows previous packages in April and June worth around 117 trillion yen each. × Government data released Tuesday revised up Japan's GDP figure for the July-September period to 5.3 percent from a preliminary estimate of 5.0 percent. The new package includes financial support for medical institutions and facilities for the elderly, and subsidies to continue a controversial domestic travel scheme supporting tourism-dependent businesses. While Japan has seen a relatively small Covid-19 outbreak overall -- with 163,929 confirmed cases and 2,382 deaths -- there has been a sharp rise in infections, and doctors have warned that hospitals could be overwhelmed. A severe shortage of medical staff has been reported in Osaka and the northern Hokkaido region, with local media saying military backup could be sent to hospitals there. The package also features a $20 billion green tech fund designed to support projects from renewable energy development to pollution reduction. In October, Suga set a 2050 deadline for Japan to become carbon neutral, significantly firming up the country's climate-change commitments.

Japan unveils fresh $700 billion stimulus package

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Japan announces $490 billion stimulus package to tackle Covid knockdown

Japan unveils fresh $700 billion stimulus package