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31 Jul 2014
Japan to cut corp tax by 2% in FY 2015, more fuel to the Nikkei 225?
FXStreet (Bali) - Yomiuri reports that Japan looks set to cut the corp tax rate by 2% starting next financial year, following PM Abe's pledge to lower the threshold below the 30% in the years to come.
According to Sonali Desai, Analyst at IFR Markets: "Cuts from April 2015 to gradually lower rate to abt 29% from >35%, with challenge being to make up lost revenue; a 2% cut equals around JPY1 tln."
The news could act as a catalyst further boosting the Nikkei 225 as prospects for more solid results by Japanese companies increase. As a reminder, the Nikkei 225 remains in an intact bull trend, and any additional positive inputs could add fuel to the upside for both the Nikkei and JPY crosses.
According to Sonali Desai, Analyst at IFR Markets: "Cuts from April 2015 to gradually lower rate to abt 29% from >35%, with challenge being to make up lost revenue; a 2% cut equals around JPY1 tln."
The news could act as a catalyst further boosting the Nikkei 225 as prospects for more solid results by Japanese companies increase. As a reminder, the Nikkei 225 remains in an intact bull trend, and any additional positive inputs could add fuel to the upside for both the Nikkei and JPY crosses.