Abe raises stakes in game to secure stronger capital investment

Tokyo

IN a kind of poker game between Japanese industry and the government, business leaders promised Prime Minister Shinzo Abe on Thursday that they would raise capital spending as he is urging, in order to boost the flagging economy - but only if he agrees to an early and large cut in corporate taxes in Japan.

Mr Abe has pressured companies to raise both capital spending and wages (another means to boost consumption, spending, and the economy) while pointing to the benefits that dramatic yen depreciation - a side effect of Abenomics - has brought by way of increased export profits.