Japan govt approves modest stimulus package

The Japanese government has approved a US$10.7 billion economic stimulus package, ahead of elections that the ruling party is widely expected to lose.

This is the second stimulus package in a little more than a month.

The new package is more than doubled the size of the previous stimulus plan.

The Cabinet Office estimated that the package will lift Japan's gross domestic product by about 0.2 percent.

Still, the latest step may do little to bolster sentiment toward Japan's economy, as the package is far smaller than any of the four extra spending plans enacted in the previous fiscal year to March.