Japan's ruling party unveils $154b stimulus plan

Japan's ruling party yesterday unveiled a $154 billion stimulus plan, around 3 percent of GDP, to battle a deepening recession but the prospect of record sales of government debt to pay for it spooked the bond market.

The top government spokesman said 10-11 trillion yen ($100-$110 billion) in bonds may be needed to pay for Japan's biggest stimulus plan ever, which would raise issuance of new bonds by a third to 44 trillion yen in the year to March 2010.

Share investors were more impressed with a package that analysts said could lift Japan's GDP by around 1.5 percent.