Japan Stocks Declining for The Third Day, All Eyes on the US Stimulus Debate

Japanese stocks fell for the third session in a row on Tuesday, 8 December, as a month-long rally was exhausted, as investors awaited the decision of US lawmakers on a new package to mitigate the repercussions of the Covid-19 pandemic.

The Nikkei index declined by 0.3% to close at 26,467.08 points. The broader Topix index fell 0.11% to 1,758.81 points, after touching its lowest level since November 20 earlier in the session.

The US Congress will vote this week on a one-week temporary funding bill to give lawmakers more time to reach agreement on a package to mitigate the fallout from the coronavirus and a comprehensive spending bill to avoid a government shutdown.

Japanese Prime Minister Yoshihide Suga said Japan will raise a new economic stimulus package worth 73.6 trillion yen, equivalent to $ 708 billion, to accelerate the country’s recovery from the significant downturn caused by the Corona virus.

The sentiment, in general, remained optimistic as investors expect the global economic recovery to continue, while it appears that vaccines for Covid-19 will soon be distributed and stimulate consumption around the world.