Japan agrees $274 bn stimulus package: Dow Jones

TOKYO: Japan's cabinet on Tuesday approved an economic stimulus package worth 274 billion dollars including more than 80 billion dollars in direct spending, Dow Jones Newswires reported.

The package is meant to boost a fragile recovery from Japan's worst post-war recession, which is now threatened by deflation and the strong yen's impact on exporting companies in Asia's biggest economy.

The cabinet of centre-left Prime Minister Yukio Hatoyama agreed on the size of the package, to be financed by an extra budget for the financial year to March 2010, after its announcement was delayed last Friday.

The package includes both direct spending and loan guarantees and other measures that do not require actual government outlays, reports say.