Japan's Prime Minister Yukio Hatoyama unveiled his first stimulus plan today as his government added 7.2 trillion yen ($81 billion) as a stimulus aid to support recovery in the world's second largest economy. This came after the Bank of Japan decided to provide 10 trillion yen of short term loans to commercial banks at 0.10%, in order to fight the surging yen and deflation risks.

Moreover, Hatoyama's stimulus plan includes 3.5 trillion yen to help regions, 600 billion yen for employment, in addition to 800 billion yen allocated for environmental initiatives. The government's aids include 3 trillion yen in tax grants to local governments to make up for a revenue shortfall.