Japan Spending Overhaul to Win Market Trust, Coalition Head Says

Japan’s government will win trust and reassure investors through a spending overhaul, the co-leader of Japan’s junior coalition partner said, a day after longer-term Japanese bond yields surged to record-highs over fiscal fears.

“We consider responsible and expansive fiscal policy to be something that is complemented with the trust that there will be responsible spending cuts,” Fumitake Fujita, co-leader of the Japan Innovation Party, said Wednesday at a press conference in Tokyo. Fujita was speaking as his party laid out its policy platform for an early election called for Feb. 8.