Japan Approves $116 Billion Stimulus Package

Japan's new prime minister, Shinzo Abe, made good on his promise to increase spending with a new 10.3 trillion yen ($116 billion) stimulus package. After more than a decade of stagflation, the leader hopes the new spending package will stimulate growth and stop deflation.

Under the new plan, the government will spend $116 billion on public works, disaster mitigation, and new technologies, while also providing subsidies and aid to businesses to hopefully raise real economic growth by 2% and add 600,000 jobs to the economy.

The iShares MSCI Japan Index ETF (NYSE: EWJ) is trading up 2.4% since the beginning of Wednesday's session on the news.