Prospect of new economic 'miracle' gives Tokyo stocks a boost

Tokyo

JAPAN'S Prime Minister Shinzo Abe has decided to go for growth - or "go for broke", some say - and the fact that Tokyo stock prices hit their highest level in more than 18 years on Wednesday, after rising sharply for two days on the heels of his announcement, suggests that fortune favours the bold, analysts said.

"Abenomics is shifting from first to second gear and the result will be a new Japanese miracle," veteran Japan equity strategist Jesper Koll told The Business Times in response to Mr Abe's decision earlier this week to prioritise economic growth and government revenue expansion over fiscal retrenchment.

The original "three pillars" of the Abenomics policies announced after Mr Abe came to power at the end of 2012 consisted of monetary and fiscal stimulus - aimed mainly at boosting personal consumption - plus structural economic…