Japan's ruling party, worried by record unemployment and an accelerating fall in consumer prices, has announced plans for an emergency economic package but failed to prevent Tokyo stocks plunging to a 15-year low.
Makoto Koga, secretary general of the Liberal Democratic Party, told reporters that action was urgently needed because the economy was deteriorating far more rapidly than expected.
He said the package to be unveiled next week would focus on steps to help the sagging stock market, boost the property market liquidity and help banks to remove the millstone of bad loans from their balance sheets.
The promised measures provided no prop for the stock market's benchmark Nikkei 225 average, which slid 3.3% to close at 12,261.80, its lowest level since July 31, 1985.
The LDP move came after new figures showing the jobless rate in January at a record high of 4.9%. Earlier this week the Bank of Japan cut its key interest rates.
